As the extension filing deadlines rapidly approach, you’re probably dealing with clients who owe taxes — yes?
- If they owe for this year, they probably owed from prior year(s), yes?
- Thus, they may already be in an Installment Agreement with the IRS, yes?
- So now, as you finish off the 2020 tax return, you’re concerned that the client owing money again will INVALIDATE the current Installment Agreement, yes?
- And now you feel like you need to contact the IRS or help the client contact the IRS to add the new debt to the old debt and keep the existing Installment Agreement in place, yes?
- And you know getting in contact with IRS right now is AWFUL and you don’t want to spend time doing that, yes?
If you answered “yes” to any of those questions and don’t want to waste time during extension deadline season, then we’ve got good news for you!
IRS recently updated its processes and will now, in MOST CASES, automatically add any new tax debt to an existing Installment Agreement…without you (or the client) needing to do anything.
Please note that I am NOT “guaranteeing” IRS will do this automatically. Especially for larger tax debts or other “special situations,” making 100% sure an existing Installment Agreement doesn’t get terminated still seems like a good idea to me. Nevertheless, adding the new debt to the existing Installment Agreement without you or the client doing anything is now the stated policy of the IRS.
We’re hoping this info takes a little weight off your and your clients’ shoulders as we speed towards the September 15 and October 15 extension deadlines.
If you like updates like this one that are designed to make your life as a tax professional easier, more profitable, and more fun, we think you’ll love our Pronto Tax School Update & Refresher courses.
We now have update / refresher packages available for all major credentials, so that you can choose the package that applies to your credential:
- Click here for the update / refresher package for CTEC tax preparers (también disponible en español aquí).
- Click here for the update / refresher package for AFSP tax preparers.
- Click here for the update / refresher package for Enrolled Agents.
- Click here for the update / refresher package for CPAs.
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