Is my IRS return money going to be automatically applied to my installment agreement debt?
Is my IRS return money for this year going to be automatically applied to my installment agreement debt from last year, or will they actually give it all to me? 1. I am on an installment agreement for 2005 taxes 2. I am expecting a nice tax return back from the IRS for 2006 but wonder if they will just decide to keep it and apply it to what I owe them. It would be an added bonus if you could provide a link to confirm your answer as I can't find anything on the IRS website, etc. Thanks!
Public Comments
- they will probably keep it but you should call them to make sure. its 1-800-829-1040
- don't bet on it they may keep it but not apply it
- Hard to say. A lot of the time in this life, we find ourselves at the mercy of whoever's in front of the computer screen.
- The IRS will keep it to cover any outstanding debt you owe. http://www.irs.gov/businesses/small/article/0,,id=156496,00.html
- The IRS will apply any refund towards your debt. Period. Here's a link to the relevant article on the IRS website: http://www.irs.gov/businesses/small/article/0,,id=156496,00.html "Will I Still Get My Tax Refunds if I have an Installment Agreement? As a condition of your installment agreement, any refund due to you in a future year will be applied against the amount you owe. Therefore, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. The IRS will automatically apply the refund to the taxes owed. If the amount of your refund does not take care of the tax debt; then your installment agreement continues until all of the terms are met."
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