How do I know if my installment payment plan was accepted? My federal tax returns were accepted and I did receive a 1040-V for the initial payment amount. Is that enough?

[cameaf]

If Form 9465- Installment Agreement Request was filed with your return and your return was accepted, you can consider the payment plan as received. You can also confirm your installment agreement with the IRS by calling them at 1-800-829-1040 Monday - Friday, 7:00 am - 7:00 pm local time once your return has been fully processed (allow 2 weeks for processing). Once the IRS completes the processing of your return, they will send you a letter confirming the installment agreement.

https://ttlc.intuit.com/replies/4062611

https://ttlc.intuit.com/replies/3301592

[Aleksandr]

But in this answer from link below it is stated the opposite information (see "Note:" from main answer):
https://ttlc.intuit.com/community/taxes/discussion/i-completed-my-tax-return-and-e-filed-i-requested...
Who is right?

[CatinaT1]

Payment plan received does not mean payment plan approved.  Once they receive your request, they must process and approve the request.

[Critter]

Traditionally the balance due returns are not processed until after 4/15 and it takes the IRS up to 3 months to process and approve the payment plan at which time you will get a letter in the mail.  Due to the Covid shutdown those returns will probably not be processed before 7/15  so all you really can do is wait patiently.  

If you set up the payments to be auto debited then expect that to happen anytime so don't be caught short in your account.   Also check here :  https://www.irs.gov/payments/online-payment-agreement-application

[Aleksandr]

I filed taxes 2 months ago and applied for installment payment plan at the time of filing(through Turbotax).I checked - my return contains form 9465. I didn't receive approve or reject for my installment payment plan.But today I received CP14 letter about my tax due with deadline of payment in 2 weeks. It is like IRS never received my installment payment plan application.
What should I do? May be try to reapply for installment payment plan online on IRS website?

[Critter-3]

Ok ... the 1040-V was for the entire 2019 federal balance due  ... so if you paid that amount you have nothing more to pay for the 2019 tax year.

Since you owed on the 2019 return the program computed 2020 ESTIMATED tax payments ... there should be 4 1040-ES forms in your file ... you are not required to make these payments if you believe you will not owe more than $1000 on the 2020 return. 

See this for calculating 2020 estimated taxes - https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-next-year-s-federal-estim...

2019 installment payments on form 9465 is no longer done thru the TT system... instead you are instructed to do so after filing on the IRS website directly ... see the screenshots from the program...

[RepubliCat45]

Same happened here, as the post ( @Aleksandr ) stating selected payment plan, been waiting for money to come out, then other day get the letter stating two or so weeks to pay (by Oct 7) or it's going to start racking up interest and penalties!

Even worse, I compared the statement against my TurboTax return, and IRS has *already* attached some penaly fees!  So, yet again, pandemic cripples country, and we the people are getting penalized for it due to impact delays???

Further bizarre; I tried to setup an online IRS account, to check what's going on.  Turns out that I can't, but for the dumbest reason possible -- because I'm *overly* financially-responsible!  To verify you're you, it wants either SS#/Tax ID & one of the following: credit card (none of my bank debit cards work, and has a note saying that most debits won't), car loan policy#, student loan policy#, home-finance policy# (oddly no option for driver's license, etc).  I'm middle-aged and went to great lengths to pay off all loans/debt, so debt wouldn't follow and cripple me later on into retirement.  But now, I can't easily reference IRS, to attempt GIVING THEM money, all because I have no debt.  Perhaps whoever thought up the logistics of how that setup works --perhaps they should be getting the penalties with interest!

-_-

[RepubliCat45]

@Critter-3

When did the payment plan options change?  I typically file responsibly early, as soon as I have all needed paperwork.  At the time, it was listed on the tax forms; so gave bank info and thought I'd be all set.  If they changed it, they should have had letters sent out by IRS and all tax-preparers to inform people, as I was never notified, nor made aware.  Then this switcheroo happens.  It's practically bait/switch entrapment, since I'm now being penalized for changes made after the fact, behind the scenes, that I was never informed of.  At very least, should qualify as breach of contract, since we sign and pay with promise that tax-preparer is helping to keep you out of a bad situation and/or penalties!

[VolvoGirl]

Regarding the underpayment penalty on 1040 line 24.  It's not for paying late.

If you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year.  Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. It is included in your tax due or reduces your refund.

You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

[Critter-3]

@RepubliCat45 

Not sure ... it happened sometime this year for the 2019 program ... if it changed since you filed then it would not have affected your return if you completed the form 9465 when filing.  

[Aleksandr]

That is ridiculous! I called IRS (it took for me ~3 hrs) and found out .... IRS  DON'T HAVE my request for installment plan.But I clearly see Form9465 exists in printout of my tax return. What was that? TurboTax had a FAKE FEATURE of applying for installment plan? If they(TT) understood that and made some changes as @Critter-3 mentioned above then why they didn't notify customers who used this feature that this feature didn't work previously. I waited 2 months for IRS approval letter of my plan and first withdrawal,but it turned out I waited for nothing.
Now due to TT FAKE FEATURE  I got penalized and forced to apply again for installment plan through IRS website.
Is there some way to file complaint to TT and get any refund?

[VolvoGirl]

Contact Customer Service
5am-5pm Pacific Time Monday -Friday
https://support.turbotax.intuit.com/contact/

What is the Turbo Tax phone number
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[Critter-3]

Set up a payment plan directly on the IRS site either when you get the IRS bill  or  now if you like ...  https://www.irs.gov/payments/online-payment-agreement-application

[Critter-3]

@Aleksandr 

If you see the 9465 then look at the filing instruction page carefully ... does it tell you to mail it or go online at IRS.gov ?    The IRS usually takes a month or more to approve the payment plan (longer this year ) so it is possible the answer you got from the IRS is not accurate ... they make mistakes all the time.