Sunday, April 12, 2009

How Does Filing Late for 2008 Affect My Current IRS Resolution?

If you are currently in an Installment Agreement with the Internal Revenue Service, and you have not filed your 2008 return, then this will default your agreement if you owe. The best advice I can give you ( if this is the case for you), is to borrow the money to pay this off. If you can't borrow from a lender, then I would apply it to a credit card or borrow from friends or family.

In working for a tax resolution firm, I have recently seen the impact having 2008 tax liability has on the current resolution agreements. Whether its currently non collectible, or partial pay installment agreements, the IRS will not have empathy if you file your return late and you owe. The Internal Revenue Service wants to see that you are in compliance and not continuing to be habitual late filers. Furthermore, the IRS can sometimes send your employer lock in letter requiring the change to be made on your withholdings (W-4); this change will be for "0" instead of the number of dependants you legitimately qualify to take as exemptions.

Consequently, once your installment agreement has been defaulted, it is very difficult to get yourself back in an agreement with the same terms. Therefore, I encourage you to keep yourself compliant and pay the tax owed at the time of filing to prevent such action from taking place !

1 comment:

footbolito17 said...

to add up, filing late would keep your interest and penalties bleeding..and would make IRS think that you are not taking the resolution seriously...

For more tax help, visit