What will the irs do?

Question

I got audited after I got last year's tax return. I owe the irs about $1700. I did an agreement/extension to pay in March. When I file my taxes for 2006, I am anticipating a refund. If I owe them, will they take it out of my refund automatically or can I request them to do so? Or, do I need to get the refund & pay as I had scheduled?

Answer 1

It will be taken automatically, if there is anything left afterwards the balance will be sent to you. If your refund is less than what you owe, continue to make your payments as agreed, your refund is not considered a payment made on your agreement, it is just paid towards the balance

Answer 2

They will automatically take your refund and apply it against the amount you still owe them. If there is anything left of your refund after paying off the back taxes, they will send that to you. If you still owe back taxes after losing your entire refund, you will continue paying in accordance with your payment agreement. Your payment won't go down because now you owe less tax, but you will pay off what you owe earlier.

Answer 3

They will automatically apply the refund to the balance still remaining and you will get what is remaining of your refund...if there is any. It even says that in your payment agreement that you got from the IRS. I've done one before too.

Answer 4

If you are paying as scheduled, they will NOT automatically seize your refund. You can elect to have it applied to the balance owed, however, which is probably a good idea, but its your choice.

http://www.irs.gov

Answer 5

If you have a payment agreement with the IRS AND if you have remained current on it, they shold not capture your refund involuntarily.