Hi,
I have an installment agreement with the IRS (agreed on by phone and implemented by paper) where I pay about $150/month towards some taxes that accrued during a period with some difficulties with a taxable army pension and also with 1099 employment. This installment has been going fine for a couple of years, they take money automatically out of the continuing pension, but it has about 4 years at the current pace to be paid in full.($6500 balance)
Separate from the installment from last year, 2010, I owe 1099 taxes, I filed the return and owe $6300. 2011 is W-2 with taxes withheld, no problem.
So I want to understand how the IRS considers these two elements. Will they add the new debt to the existing installment plan,or will they kept them separate ?
And if I pay money earmarked on the check and note, like on a 1040-V, to 2010, say $3000, will they apply it to the installment instead, under an oldest debt first concept ?
Any help appreciated.
Note: The installment agreement sasy "All installment agreement payments will be applied to the oldest tax owed..." which is understandable. However, above I am asking about payments that are not designed for the installment agreement. My CPA seemed to indicate that all payments would go automatically to the installment agreement, but that does not seem right, thus I am asking.
One other question. On the earlier debt, now that there is an installment, is it still possible in any way to try to make this an Offer In Compromise, or a Partial Installment Agreement. Just asking
Steven
I have an installment agreement with the IRS (agreed on by phone and implemented by paper) where I pay about $150/month towards some taxes that accrued during a period with some difficulties with a taxable army pension and also with 1099 employment. This installment has been going fine for a couple of years, they take money automatically out of the continuing pension, but it has about 4 years at the current pace to be paid in full.($6500 balance)
Separate from the installment from last year, 2010, I owe 1099 taxes, I filed the return and owe $6300. 2011 is W-2 with taxes withheld, no problem.
So I want to understand how the IRS considers these two elements. Will they add the new debt to the existing installment plan,or will they kept them separate ?
And if I pay money earmarked on the check and note, like on a 1040-V, to 2010, say $3000, will they apply it to the installment instead, under an oldest debt first concept ?
Any help appreciated.
Note: The installment agreement sasy "All installment agreement payments will be applied to the oldest tax owed..." which is understandable. However, above I am asking about payments that are not designed for the installment agreement. My CPA seemed to indicate that all payments would go automatically to the installment agreement, but that does not seem right, thus I am asking.
One other question. On the earlier debt, now that there is an installment, is it still possible in any way to try to make this an Offer In Compromise, or a Partial Installment Agreement. Just asking
Steven
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