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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12000
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a $200/month installment agreement in effect

Customer Question

I have a $200/month installment agreement in effect for 2013 taxes owed. H & R Block suggested that I request to continue that deduction of $200/month from checking for my 2014 taxes ($2,645). Can the deduction continue, or must a new form be submitted for 2014?
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
I would not advise just continuing without doing anything.
You can arrange another installment agreement to cover the balance for this year.
But you MUST contact the IRS to have the agreements consolidated.
As a matter of fact, see this (FROM H&R Block):
The most efficient way to make sure this happens is to call IRS (although you may have tow wait 30 minutes or so, the rep can pull up your installment agreement already in place and get it done).
Another thought is to go in to an IRS field office:
Let me know if you have questions ...
Expert:  Lane replied 2 years ago.
To provide more of the rationale for not just doing nothing...
I am told by a colleague that that when you are on an installment plan for prior years' tax liability, and you owe for the current year, the installment plan will default.
And then, s I've already emntioned they can consolidate the two which CAN have the effect of raising the payment amount (unless they allow for a longer period).
Hope this helps

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