Expert: Richard Stolp - 4/9/2011

Question
i had deliquent taxes and they caught up with me last year. I owed about 25,000 I have the balance down to about 9000 now through a lump payment and i am on a monthly payment plan now. well this year now i will owe about 12000-13000. can i make a lunp payment now about 6500 and add the rest on to my monthly payments? what form would i need? and how do i know they will accept it?

Answer
Sorry I was out for a long weekend. Basically, yes, you can roll your new balance due into the old one - as soon as the IRS completes processing your 2010 return. You don't need a form - just call 800 829-7650 and explain your situation. There may be a fee to re-cast your installment agreement. And, you will have to listen to a few minutes on how to fix the problem so you don't have a balance due every year. Be sure to get your 2010 return in on time so you don't incur any failure to file penalties.