My future in laws didn't file returns for at least the last 5 years and are trying to get square with the IRS (allegedly). They've now filed their old returns. In my googling, it looks like you can reach out to them to start a payment plan once your back returns are accepted even if they're not all processed. I don't think they've contacted the IRS but they say they need to wait until they're all processed.
Does anybody know which is correct and have a link that clears this up. I'm minimally involved but I'm trying to understand if I'm getting told a tale before a bid then good luck.
Multiple years of unfilled returns, when can a payment plan be initiated
byu/redshlrt intax
Posted by redshlrt
3 Comments
You can file a installment agreement request with your tax return, but in order to avoid having to repeat your self its best to wait for the IRS to process all returns and assess penalties and interest.
You can file one for any year, but I would file all returns then request one.
If you aren’t under examination it’s not an issue
Nothing is preventing them from making payments now, outsides payment plan. But for a clear plan. It’s best to wait until the returns are processed.
If they are under threat of levy action. Assuming they are filing compliant now. They can ask for a six month hold on collection action. Until the returns are processed. So, that they can make a payment plan.
In the mean time. They can catch up on estimated tax payments for 2025. Then correct their withholding for the start of 2026 or start making 2026 payments on time.
One of the requirements of an installment agreement is to get future years filed and paid on time.