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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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This is a two-part question. I am paying in installments $300

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This is a two-part question. I am paying in installments $300 a month to the Irs for my 2007 taxes. I have won a $10,000 lottery in the state of Washington. Will the Irs claim the balance I owe them out of my winnings, and if so, should I wait until 2009 to claim the winnings, so I don't get hit so hard for 2008?
Hello and thank you for using Just Answer. If you have a payment plan with the IRS to pay $300 per month the IRS will not ask you to pay out of the $10,000 the balance you owe to the IRS. It is up to you if you want to continue to pay the $300 per month or pay more per month or use the winnings from the lottery to reduce your tax debt. If you are due a refund the IRS will apply the amount to your back taxes due but, the IRS will not claim the amount of your winnings from the lottery. You will have to claim the amount you won from the lottery on your 2008 Federal tax return.
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