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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I am a tax preparer, and have set up monthly online payments

Customer Question

I am a tax preparer, and have set up monthly online payments for my client thru the EFTPS, but he has received a notice of intent to levy. I was told by an IRS rep that those payments aren't recognized because you must first set up an online payment agreement. How would I go about setting up an OPA for him, and having the payments he made thru EFTPS credited to his 1040 income tax payments?
Submitted: 1 year ago.
Category: Tax
Expert:  Charles Markham replied 1 year ago.

Hello! So, I think you were hoping that by setting up the payments through EFTPS that the IRS could "see" the payments and therefore recognize that a de facto installment agreement had been set up. Sadly, the two systems don't talk to each other, and the EFTPS payments can be cancelled at ay time, so the IRS wouldn't rely on them anyway.

Expert:  Charles Markham replied 1 year ago.

You can't "convert" the EFTPS payments into an online OPA with direct debits. I would suggest you have two options:

1. Set up an Installment Agreement but don't request direct debit. You can always just mail in Form 9465 for this purpose if OPA won't allow you to do this. Then the EFTPS payments will pay the Installment Agreement payments--just because you agree to mail in a check doesn't mean you can't pay electronically OR

2. Set up a true OPA using the IRS website, I have a tough time getting that OPA website to work, but maybe you can. You will need the Caller ID number from a recent collection notice. You will now have DUPLICATE payments and you will have to call EFTPS to cancel the payments you've scheduled. I don't have the number, but there is one on their site and they will cancel the payments.

Expert:  Charles Markham replied 1 year ago.

As I think about this, maybe you want to make sure you (if you decide to go with option 2) that you can in fact cancel those EFTPS payment before doing anything else (you can always put them back!

If you received a Notice of Intent to Levy was this CP504 or did this include appeal rights? That is did it include Form 12153? If it included 12153, fill out the form and request an installment agreement. This will prevent a levy and will definitely slow things down. You can put in plain English what you've done "scheduled payments via EFTPS and want to establish a formal Installment Agreement"

Expert:  Charles Markham replied 1 year ago.

I hope this helps. If you get back to me tonight, I will be around, I only log onto to this website sporadically, I am afraid to admit, but I should get an email.