If I agree to the CP2000 audit statement that I owe the IRS X amount of dollars...?

Question

then can they deduct that amount from my tax refund?

In other words, I agree to the IRS saying that I owe them X dollars and agree to pay Y dollars every month -- can the IRS then say that since I'm getting Z dollars from my tax refund check, that the IRS will instead just take the lump sum from the tax refund instead?

I hope I'm being clear. I'm so worried about this.

Thanks in advance.

I was late 1/2 times on payment but have been pretty consistent.

Does this matter at all? I wouldn't think so since that means that they will get more interest and penalties.

Answer 1

Sign the CP2000 agreeing to the amount you owe. IF IRS has processed your Cp2000 amount by the time they have fully processed your 2007 tax return the refund will be offset, but if IRS has not processed the CP2000 the refund will be issued to you and then you will receive a notice that you owe IRS it will show the amount owed and Interest/Penalties you owe.
Relax, the CP2000 also has a box to check if you want to pay the amount in installments, and also included a Form 4506, Installment Agreement request. A USER FEE of $105.00 is charged for and Installment agreement, If you request an Direct Debit Installment Agreement the USER FEE charge is only $52.00.
Remember, even though you request an installment agreement, Interest will still accrue until you pay the amount you owe.

Answer 2

If you have a balance due IRS will offset any refund to it regardless of any other payment agreement you have.

If you expect a refund on your 2007 return, you should file it as soon as possible. This is because IRS will apply your refund to what you owe as of the date the return is processed or April 15, whichever is earlier. You will save on late payment penalty and interest if you file early.

If you sign an agreement to the additional tax on the CP 2000, interest does not accrue from 30 days after IRS receives it until it sends you a bill.

If I have confused you, you can email me through my profile for clarification of more confusion.

Answer 3

Sign the form and return it. This will allow the IRS to go ahead and add the tax to your account.

You will receive a bill. Yes, you can request a 120 day extension to pay which should take you past tax season before the IRS sends you another bill. Yes, when the IRS processes your 2007 tax return, if they see you owe on another year, they will apply the refund to that before sending you any excess.

In the mean time you will owe further penalties and interest.

Answer 4

a number of mechanical contracting organisation grew to become into used to launder maximum of my drug organisation. while the IRS audited me, they despatched an auditor that knew me individually. He grew to become into identifying to purchase 1 / 4 ounce of cocaine each week from me. We have been the two stunned yet figured the only thank you to be sure issues grew to become into to do a line and fake my audit. He at last narced on me, denied his involvement and cut back a handle the feds. i might like to fulfill the little cacksucker in a gloomy alley. RScott

Answer 5

Whether you have a payment plan in force or not, and if you do whether it's current or not, if you have an outstanding balance when you file your return, any refund due WILL be captured up to the amount of your outstanding balance.