I know it's a weird question, but if the taxpayer suddenly gets a large chunk of money, can he tell the IRS, "forget our agreement, here's the balance"?
If so, is there any sort of early payment penalty or the like?
Thanks.
David Rosenbaum
Absolutely.
Nope.
wrote
You don't even have to explain it. They'll take payment for the remaining balance at any time.
Nope. None at all. If you're contemplating this, call the IRS to get a pay-off balance "as of" a certain date.
There may be some small balance due of unpaid interest or overpayment if you send the check in later or earlier than the date the interest is computed through.
And of course, there'll be some follow up notices for up to a few months.
There is no penalty, just call and get the payoff and mail a check.
wrote
Yes. Just pay the balance as soon as possible. Worst case there may be a bit of interest and penalty that still has to be paid, for the period between the last payment and payment of the balance. The IRS will let you know.
The only thing that might be weird about your question is if it was never asked in the first place.
No. The IRS strongly encourages people to pay off the balance a.s.a.p. because the interest, penalties, and fees are so high.
On May 22, 8:57 am, "Paul Thomas, CPA"
It's not possible to reach the IRS these days as they're so busy. After you select a few choices and enter your social security number the phone, it cuts you off due to the large call volume.
to mail a check to pay off your installment balance early -- the response was to mail it to the normal place where you mail your tax return with payment. So then one would mail a check (with the social security number in the memo field) to the address shown on 1040-V, and preferrably a form 1040-V along with it; make a photocopy of the form
1040-V, send the check and 1040-V by certified mail, and keep a copy/ image of the cleared check. But my preferred way would be to pay on EFTPS -- select the tax period as 2007 and not sure what to select for the payment type. On the EFTPS website you can print out PDF receipts of each payment you made.
Thanks to everyone for their thoughts!
David
Note also that if you pay within 2 weeks of the due date of the next scheduled payment, it's possible that the scheduled payment will go through anyway - because the IRS won't have sufficient time to post the full payment before the scheduled one occurs.
All the previous posts provided good advice, especially the one that commented on the inaccessibility of the IRS toll-free lines. IRS toll-free phones have been jammed beyond capacity with stimulus payment callers for a while now.
I recommend you visit your local IRS walk-in office (see link below), ask them to compute a payoff balance, then write them a check. As noted previously, you may continue to receive notices for one to two months. Wait until about six weeks after you've paid the tax and contact IRS again and ask them to send you a transcript of each account on which you previously owed. The transcripts should reflect the balance(s) paid in full.
Condor
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