Can taxpayer revoke installment agreement?


D

davidrosenbaum

I know it's a weird question, but if the taxpayer suddenly gets a
large chunk of money, can he tell the IRS, "forget our agreement,
here's the balance"?

If so, is there any sort of early payment penalty or the like?

Thanks.

David Rosenbaum
 
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P

Phil Marti

I know it's a weird question, but if the taxpayer suddenly gets a
large chunk of money, can he tell the IRS, "forget our agreement,
here's the balance"?
Absolutely.

If so, is there any sort of early payment penalty or the like?
Nope.
 
P

Paul Thomas, CPA

I know it's a weird question, but if the taxpayer suddenly
gets a large chunk of money, can he tell the IRS,
"forget our agreement, here's the balance"?



You don't even have to explain it. They'll take payment for the remaining
balance at any time.


If so, is there any sort of early payment penalty or the like?



Nope. None at all. If you're contemplating this, call the IRS to get a
pay-off balance "as of" a certain date.

There may be some small balance due of unpaid interest or overpayment if you
send the check in later or earlier than the date the interest is computed
through.


And of course, there'll be some follow up notices for up to a few months.
 
M

Mike Wellman

I know it's a weird question, but if the taxpayer suddenly gets a
large chunk of money, can he tell the IRS, "forget our agreement,
here's the balance"?

If so, is there any sort of early payment penalty or the like?

Thanks.

David Rosenbaum
There is no penalty, just call and get the payoff and mail a check.
 
E

Elle

I know it's a weird question, but if the taxpayer suddenly
gets a
large chunk of money, can he tell the IRS, "forget our
agreement,
here's the balance"?
Yes. Just pay the balance as soon as possible. Worst case
there may be a bit of interest and penalty that still has to
be paid, for the period between the last payment and payment
of the balance. The IRS will let you know.

The only thing that might be weird about your question is if
it was never asked in the first place.
If so, is there any sort of early payment penalty or the
like?
No. The IRS strongly encourages people to pay off the
balance a.s.a.p. because the interest, penalties, and fees
are so high.
 
R

removeps-groups

On May 22, 8:57 am, "Paul Thomas, CPA"
Nope.  None at all.  If you're contemplating this, call the IRS to get a
pay-off balance "as of" a certain date.
It's not possible to reach the IRS these days as they're so busy.
After you select a few choices and enter your social security number
the phone, it cuts you off due to the large call volume.
From my previous post on this topic last week -- my question was where
to mail a check to pay off your installment balance early -- the
response was to mail it to the normal place where you mail your tax
return with payment. So then one would mail a check (with the social
security number in the memo field) to the address shown on 1040-V, and
preferrably a form 1040-V along with it; make a photocopy of the form
1040-V, send the check and 1040-V by certified mail, and keep a copy/
image of the cleared check. But my preferred way would be to pay on
EFTPS -- select the tax period as 2007 and not sure what to select for
the payment type. On the EFTPS website you can print out PDF receipts
of each payment you made.
 
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D

davidrosenbaum

On May 22, 8:57 am, "Paul Thomas, CPA"


It's not possible to reach the IRS these days as they're so busy.
After you select a few choices and enter your social security number
the phone, it cuts you off due to the large call volume.


to mail a check to pay off your installment balance early -- the
response was to mail it to the normal place where you mail your tax
return with payment.  So then one would mail a check (with the social
security number in the memo field) to the address shown on 1040-V, and
preferrably a form 1040-V along with it; make a photocopy of the form
1040-V, send the check and 1040-V by certified mail, and keep a copy/
image of the cleared check.  But my preferred way would be to pay on
EFTPS -- select the tax period as 2007 and not sure what to select for
the payment type.  On the EFTPS website you can print out PDF receipts
of each payment you made.
Thanks to everyone for their thoughts!

David
 
D

D. Stussy

Elle said:
Yes. Just pay the balance as soon as possible. Worst case
there may be a bit of interest and penalty that still has to
be paid, for the period between the last payment and payment
of the balance. The IRS will let you know.

The only thing that might be weird about your question is if
it was never asked in the first place.


No. The IRS strongly encourages people to pay off the
balance a.s.a.p. because the interest, penalties, and fees
are so high.
Note also that if you pay within 2 weeks of the due date of the next
scheduled payment, it's possible that the scheduled payment will go through
anyway - because the IRS won't have sufficient time to post the full payment
before the scheduled one occurs.
 
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C

Condor

I know it's a weird question, but if the taxpayer suddenly gets a
large chunk of money, can he tell the IRS, "forget our agreement,
here's the balance"?

If so, is there any sort of early payment penalty or the like?
All the previous posts provided good advice, especially the one that
commented on the inaccessibility of the IRS toll-free lines. IRS toll-free
phones have been jammed beyond capacity with stimulus payment callers for a
while now.

I recommend you visit your local IRS walk-in office (see link below), ask
them to compute a payoff balance, then write them a check. As noted
previously, you may continue to receive notices for one to two months. Wait
until about six weeks after you've paid the tax and contact IRS again and
ask them to send you a transcript of each account on which you previously
owed. The transcripts should reflect the balance(s) paid in full.

http://www.irs.gov/localcontacts/index.html


Condor
 

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