Sisyphus on a Scree Slope
February 7, 2015 12:07 PM Subscribe
Can a person who owes past federal taxes and has set up a payment plan with the IRS make voluntary contributions to her employer's retirement plan, provided she continues to make the payments to the IRS as agreed?
The question is about what is possible/permissible/legal, not whether or not she should.
The question is about what is possible/permissible/legal, not whether or not she should.
I agree you can call the IRS and they are fairly easy to talk to, but I can't imagine why this wouldn't be OK.
You agreed to make a payment plan and you're making the payments; what possible right or argument could they have for caring about what you do with the rest of your money?
posted by drjimmy11 at 12:25 PM on February 7, 2015
You agreed to make a payment plan and you're making the payments; what possible right or argument could they have for caring about what you do with the rest of your money?
posted by drjimmy11 at 12:25 PM on February 7, 2015
Best answer: I'm currently doing this. No problems at all.
posted by JoeZydeco at 12:36 PM on February 7, 2015
posted by JoeZydeco at 12:36 PM on February 7, 2015
Best answer: I did, for years. The IRS is totally easy to work with. Your state tax bureau (if you owe with them) may be tougher. Mine was. (I had a many-years tax burden to pay off. Federal? Simple. State? Awful.)
posted by xingcat at 12:36 PM on February 7, 2015
posted by xingcat at 12:36 PM on February 7, 2015
So, you have it, here is the Internal Revenue Manual section on what counts as defaulting on an installment agreement.
Make sure you file your 2014 return on time and, if you owe, pay as much as you can by April 15. Any remaining balance after April 15 will cause your installment agreement to default, but you can call them to have it reinstated and roll your new balance into it (there's an additional setup fee for this). It's not a big deal; it happens all the time.
posted by melissasaurus at 1:23 PM on February 7, 2015
Make sure you file your 2014 return on time and, if you owe, pay as much as you can by April 15. Any remaining balance after April 15 will cause your installment agreement to default, but you can call them to have it reinstated and roll your new balance into it (there's an additional setup fee for this). It's not a big deal; it happens all the time.
posted by melissasaurus at 1:23 PM on February 7, 2015
This thread is closed to new comments.
posted by Ruthless Bunny at 12:19 PM on February 7, 2015