Can I receive a tax refund if I am currently in a payment plan for prior year’s federal taxes?
That is a great question and knowing the answer can save you some frustration. The Bible says “Expectation postponed is making the heart sick”. So you could be getting frustrated waiting for a refund that will not come to you. Notice what the IRS says about this question on its website:
Question: Can I receive a tax refund if I am currently in a payment plan for prior year’s federal taxes?
|Answer: As a condition of your agreement, any refund due you in a future year will be applied against the amount you owe.
Typically I get asked if there is anyway around this so you can get your refund. I have not seen the IRS make an exception and give someone a refund rather than apply it to the amount due from prior years.
For my assistance to prepare your tax returns or help you with a issue with the IRS contact me using my contact information below.
Jeff Haywood, CPA
I prepare the following types of tax returns:
Federal and State Returns
Also, I am available for tax planning and discussions about business, retirement planning and life goals.
For recent US income tax content see the following links:
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return
For a full list of prior posts see the CPA Tax Blog.
As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.
This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.