I have a payment plan. If I file a first time abatement application will it affect my payment plan, ie will they stop my payment plan until they review?
You should wait until you fully pay the tax. The penalty applies each month. If you get abatement before you finish paying all of the tax, they can only waive the penalties that have already been applied, but more penalties will continue to grow in the future. So wait until the tax is fully paid and then ask for the abatement.
I just read recently that the new IRS policy is to automatically apply the first time abatement if you are eligible. So you might not have to do anything once the tax is fully paid.
Jacobisbeast16 on
No. It won’t have any impact on the plan itself. When there’s a pending adjustment, the Online Account information disapoears until it processes. You’ll get a CP 21 with an updated balance. It will depend immediate payment. Ignore that part.
As mentioned above, the penalty can come back. If it does, request the Abatement again nearing the plan completion.
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You should wait until you fully pay the tax. The penalty applies each month. If you get abatement before you finish paying all of the tax, they can only waive the penalties that have already been applied, but more penalties will continue to grow in the future. So wait until the tax is fully paid and then ask for the abatement.
I just read recently that the new IRS policy is to automatically apply the first time abatement if you are eligible. So you might not have to do anything once the tax is fully paid.
No. It won’t have any impact on the plan itself. When there’s a pending adjustment, the Online Account information disapoears until it processes. You’ll get a CP 21 with an updated balance. It will depend immediate payment. Ignore that part.
As mentioned above, the penalty can come back. If it does, request the Abatement again nearing the plan completion.