IRS Payment Plan

[ILLMAS]

TP submitted an installment agreement in early April to start paying in mid May, since she hadn't recieved an acceptance letter I asked her to call the IRS and find out what's going on. Well they barely approved it and she needs to start paying in mid June, TP is prepared to send a payment for May, if I ask her to send the payment anyway for this month, she won't null or void the agreement if the IRS agree for her payment plan to start in June? I don't see it is a problem of her sending the payment with the IRS earlier (reduces penalties and interest), but I just don't my TP to have any problems of sending a payment earlier.

[JohnH]

I'd be inclined to do it the IRS way. The small P&I reduction for the May payment won't be worth the hassle if IRS fails to credit the payment properly.

Wait until the first notice arrives before making a payment, so IRS will have a piece of paperwork to match up with the check. The client can always send MORE with the June payment (even double up on it), if they choose to do so.

[ILLMAS]

I'd be inclined to do it the IRS way. The small P&I reduction for the May payment won't be worth the hassle if IRS fails to credit the payment properly.

Wait until the first notice arrives before making a payment, so IRS will have a piece of paperwork to match up with the check. The client can always send MORE with the June payment (even double up on it), if they choose to do so.

Thanks, I forgot the IRS mis-applies payments and it takes months for them to correct them.

[MAMalody]

I have not looked for a year or so, but when I last looked the IRS indicated that you should go by the agreement you proposed regardless of when you receive your confirmation. They indicated that if you did not, it could void the agreement because you did not keep it. Just a thought.