Taxes - Payment Plans

Hello All,

I am on payment arrangements for 2017 taxes. I filled 2018 taxes and I have already setup payment arrangements. Considering I was never delinquent, will making payment arrangements on the prior years taxes ever be a problem?

This has come up before. Some people (including me) don’t think it is a problem as long as you are current with the payment plan; others think it is an issue.

Another possible concern would be if there was some financial difficulty that caused you to have to go on a payment plan. But that’s a different discussion :slight_smile:

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An investigator or adjudicator may be interested in why you owed a significant amount in taxes so that it required a payment plan. It can show that you didn’t follow the rules of the IRS. Being on a payment plan by itself shouldn’t be an issue. Are you making another payment plan for 2018? Whatever the problem that occurred in 2017, you shouldn’t have fallen into the same problem for 2018.

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Plan to provide proof of this payment plan and proof that all payments have been current during your subject interview. If you cannot provide this information, you will likely be asked to sign a tax release (4506-t) so we can follow up with the IRS. You will also have to talk at length about why you were unable to pay your taxes by April 15th. The amount of debt, causes, and mitigating circumstances will determine if this is a “problem” or not.