Welcome Guest. Register Now!  

LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 05-18-2008, 03:04 PM
TaxGuru's Avatar
Tax Guru
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
Can a Taxpayer receive a tax refund if they owe the IRS for prior years taxes?

A commonly asked question is "Can a Taxpayer receive a tax refund if they owe the IRS for prior years taxes and they have an agreed installment payment plan to pay for these tax liabilities?"

Whenever a taxpayer has accepted a payment plan with the IRS to pay for prior year's outstanding tax liability, one of the condition of the agreement is that any potential tax refund due to the taxpayer in a future year would be applied against the amount that is owed.

Thus, the taxpayer may not get all of the tax refund assuming they owe past-due federal tax. The IRS will automatically apply the refund to the taxes owed. Clearly, if the refund does not take care of the prior years outstanding tax liabilities the taxpayer must continue to make the timely installment agreement.

Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
How Long Should It Take To Receive Your Tax Refund? TaxGuru For 2008 0 04-27-2008 06:44 PM
How can I get a copy of my prior years tax return? Wayne Miscellaneous 1 02-19-2008 04:01 PM
How can a taxpayer request copies of prior year tax returns? TaxGuru General 0 12-03-2007 10:39 AM
Can a taxpayer effectively plan to avoid paying AMT taxes? Adam Alternative Minimum Tax 1 07-30-2007 04:48 PM
Must I pay estimated taxes immediately after I receive a big bonus? Tanya Estimated Taxes 1 07-30-2007 03:21 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 » Income
 » IRA/Sep
 » Medical
 » Payroll
Forum for CPAs
Financial Planning