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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4670
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I filed my income tax online and unfortunately i owed the

Customer Question

hi i filed my income tax online and unfortunately i owed the IRS, so i agreed to pay my debt in 5 payments, i sent my first payment to the designated office in Kentucky, and my check was cleared upon checking on my bank, my second payment is due this month but the IRS sent me a letter to pay the whole amount this month, so now i am confuse should i follow the installment plan or the who;e amount they are asking?
Submitted: 2 years ago.
Category: Tax
Expert:  PDtax replied 2 years ago.
Welcome to the site. I'mCustomer and will be helping you today.
When you filed your return, did you file the return with the installment agreement request form 9465 or did you file and work out terms with IRS afterwords? The results will be the same, but it might explain things easier.
If you made the request when you filed, IRS would have processed that request with the filed return, and set you up for payments. There would not be a demand letter sent if your first payment was timely. No event to trigger the letter would have happened.
My guess is that you filed, and set up payment terms with IRS after you filed originally. You made an informal agreement over the phone, and made your first payment. The problem is there was no formal agreement in place, unless you executed one, after the phone call with IRS.
I suspect their letter crossed in the mail with your payment, and the IRS letter can be ignored. Continue to make your payments as agreed. If IRS follows up, remind them you have a payment arrangement that you have honored.
IRS will not take any of their more aggressive collection tactics in this situation; just continue to make your payments as agreed and you'll be fine.
Thanks for asking at Just Answer. Positive feedback is appreciated. I'mCustomer