Frequently Asked IRS Tax Questions
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IRS Tax FAQs

1. How can I enroll in an IRS payment plan?
The first step to enroll in an IRS payment plan is to apply online for a plan or installment agreement. The IRS will generally allow you to set up a streamline payment plan if you owe less than $50,000.

2. What are the IRS payment plans available?
The short-term payment plan is for taxpayers who can pay off their debt in 120 days or less. The long-term payment plan is also known as an installment agreement. It’s for taxpayers who need more than 120 days to pay the amount, and the payments are taken through automatic withdrawals from your checking account. The streamline payment plan is available if your balance is below $50,000, and your payments will be made over 72 months with no financial information provided. Finally, for balances greater than $100,000, the IRS will require you to provide financial information including income and proof of expenses.

3. Can I receive a refund if I’m still paying taxes for a previous year?
No, you cannot receive a refund if you still owe the IRS money. For example, if you owe the IRS $1,000 for tax year 2019 and you are receiving a refund of $800 in tax year 2020, then the IRS will apply the $800 refund toward what you owe, bringing your total owed to $200.

4. I made a mistake on my tax return that’s already filed. What should I do?
If you forgot to income a 1099 or W-2, or other income or deductions, the IRS may sent you a CP2000 Notice which will show this increase in income. If there is an error on your return, you should consider filing an amended or corrected return using Form 1040-X. When filing an amended return, be sure to include any forms that you’re changing that you did not file originally. The IRS typically takes up to 16 weeks to process amended returns. Recently, the IRS has finally decided to process amended returns electronically. In the past, amended returns must have been paper filed.

5. Should I file make estimated tax payments?
Quarterly taxes, or estimated tax payments, are typically made for the current tax year if you expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits. Or, you expect your withholding and refundable credits to be less than 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return. Quarterly tax payments are often filed by independent contractors, sole proprietors and businesses that do not have their taxes withheld in paychecks.

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