IRS installment plan


#1

SF86 question in section 26 ask if I have ever not paid my taxes. A couple years ago my CPA had me file my taxes on Oct 15th deadline. She filed for an extension for the Oct 15th deadline which is very common she said. I paid most of the federal tax owed and the remaining I asked for a payment plan. The IRS accepted and it drafted out of my checking every month. I paid it off without a hitch. My question is…is that considered “not paying my taxes” because they had me on a payment plan. I was never in default or anything. I simply paid what was remaining on a payment plan. I want to answer the question correctly. I have never not filed on time or not paid my taxes. 90% of my life I have always had a large refund.


#2

With the caution that I am not now, nor have I ever been, an adjudicator, I do not think this is an issue. You filed the appropriate extensions, made arrangements to pay the tax on an installment plan, and you are making the payments. This doesn’t sound like a problem to me.

It’s when people don’t file at all or don’t pay the amount due and they start getting letters from the IRS that it gets to be a problem.


#3

Agree with Squirrel. But the IRS does back date in interest to April 15th. Found that out the hard way. Troubles with the IRS are particularly onerous. Nobody wants to fight a federal agency. I think if you include the paragraph written above you address the issue right up front.


#4

Not paying your taxes on time, even with an extension/payment plan or anything else, is still considered late in the eyes of the IRS.


#5

That is correct, I forgot about this. The tax is still due on April 15th and you owe interest from that date as @amberbunny noted. But I think you would not be subject to any penalty.

Not only am I not an adjudicator, I am not a tax attorney either :stuck_out_tongue:


#6

By chance…did you stay at a Holiday Inn Express last night?


#7

The question doesn’t ask, “did you ever pay your taxes late”. The question is “did you ever NOT PAY your taxes”. You paid, the IRS is happy, everybody is happy. Answer, “No” . . .


#8

Ed is right. I made a mistake and didn’t include some small income. IRS found out years later and I had to pay a penalty along with those taxes. Paid it. SF86 still said No for that question. I was still renewed.


#9

A payment plan with he IRS is considered not paying your taxes on time. That is what I was told.


#10

That makes no sense. By setting up a payment plan you are paying your taxes.


#11

It does make sense, taxes are due by a certain date. The IRS lets you pay then over an extended period. You still have interest.

https://www.irs.gov/payments/payment-plans-installment-agreements


#12

You have a payment plan. You are paying taxes.

“A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe.”

There isn’t and word foolery here.


#13

What are the benefits of paying my taxes on time?

By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.

If you’re not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There’s also a penalty for failure to file a tax return, so you should file timely even if you can’t pay your balance in full. It’s always in your best interest to pay in full as soon as you can to minimize the additional charges.

Seems pretty clear to me.


#14

Except it does not address a payment plan


#15

I was briefed during my training that being late on your federal taxes is considered late, even with a payment plan. That is why the payment plan has interest and penalties. The only exception is Military who served/serve in a combat zone.

Believe what you want.


#16

If you are on a payment plan, then you have used an agreed upon and legal way to have an extended manner to pay your taxes on time. IRS encourages you to pay via payment plan as opposed to not paying at all. Basically they want to work with you.

“ A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame. If you qualify for a short-term payment plan you will not be liable for a user fee. Not paying your taxes when they are due may cause the filing of a Notice of Federal Tax Lienand/or an IRS levy action. See Publication 594, The IRS Collection Process (PDF).”


#17

“ Beginning in June 2017, DOHA will use a revised set of regulations to evaluate applicants for security clearances. Under the revised Guideline F, a new mitigating factor has been added:

the individual has made arrangements with the appropriate tax authority to file or pay the amount owed and is in compliance with those arrangements.
Adjudicative Guidelines (effective 08 June 2017), paragraph 20(g). This should mean that in the future, an applicant’s failure to pay taxes may be excused if the applicant has set up a payment plan with the IRS or state tax office and can show a track record of meeting obligations under the plan. In this respect, tax delinquency may be treated like any other financial problems, such as an unpaid credit-card bill.”


#18

It doesn’t really matter what you think . . . The point is that the taxes are PAID. The question doesn’t ask if you have ever been late.


#19

And it really doesn’t matter what you think. Not paying your taxes on time is not paying your taxes.


#20

If you have a payment plan, you are good