Deal with Your Finances During the COVID-19 Crisis
  • April 6, 2020
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In the view of many taxpayers, the IRS is like some kind of “big bad wolf”. This fear of the IRS usually results from a general lack of information on the government agency and how it operates. One of the areas that confuse most taxpayers is that of IRS appeals. For this reason, we are going to answer 5 of the most common questions people have about the IRS and the IRS office of appeals.

Question #1

Can you receive a tax refund if you’re currently making payments under an installment agreement or payment plan for another federal tax period?

Unfortunately, the answer is no. In order to apply for an IRS installment agreement with the IRS office of appeals, you are required to contribute any due refunds towards your tax debt payments. However, it is important that you keep in mind that your refunds won’t be taken as part of your regular payments. This means that even if your refunds are credited towards the payment plan, you’ll still have to make your regular payment installments according to schedule.

If your refund exceeds the balance of your debt and you don’t have any other past debt such as federal or state tax, child support, and student loans, you can receive a refund. You will get the excess amount once your tax debt is covered.

Related Blog: Answering 5 FAQS about IRS Penalty Abatement

Question #2

What should I do if I made a mistake on my federal return that I’ve already filed?

If you notice a mistake on your tax return, taking the right course of action without delay is key. There are different courses of action that you can take.

When you’ve simply made a mathematical error, chances are that your mistake will be corrected by the IRS. Mathematical errors are often noticed during the processing of your return and corrected accordingly. Major mistakes such as claiming an incorrect filing status or omitting a change in your income, deductions, or credits, require you to file an amended return using Form 1040X. Once filed, the IRS can take up to 16 weeks to process the amended return.

Question #3

How do I know if I have to file quarterly individual estimated tax payments?

There are certain conditions under which you are required to make estimated tax payments for the current year.

Do you expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits? If the answer is yes, you must answer the following. Do you also expect your withholding and refundable credits to be less than 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on the previous year’s tax return? Meeting both of these conditions means that you must make estimated tax payments.

Always remember that special rules apply for some high-income taxpayers, nonresident aliens and farmers, and fishermen.

Related Blog: Answering 5 FAQs about IRS Tax Lien Assistance

Question #4

I retired last year and started receiving social security payments. Do I have to pay taxes on my social security benefits?

To determine whether your benefits are taxable, you’ll need to add one-half of your benefits, plus all of your other income, including tax-exempt interest. If this amount is greater than the base amount for your filing status, then your benefits can be taxable. The base amount of your filing status varies based on whether you’re single, married filing jointly, married filing separately from your spouse but living together or married filing separately and living apart for at least a year.

Question #5

Is there an age limit on claiming my child as a dependent?

If you want to claim your child as a dependent on your tax returns, he or she must meet either the qualifying child test or the qualifying relative test. So, what criteria must your child meet?

For the qualifying child test, your child must be younger than you and either less than 19 years old or be a “student” less than 24 years old as at the end of the calendar year. If your child is permanently and totally disabled there is no age limit on the qualifying test.

Get Answers and Help Today

The IRS office of appeals can provide a lot of information regarding IRS appeals and appeal letters, among others. You can also get specific information and answers regarding your IRS tax problems by consulting a tax law professional. Nick Nemeth’s Law Offices offer free consultations on IRS appeals and a host of other tax-related matters. Get the answers you need and simplify your annual taxing obligations. Call us at (972) 426-2553 for more information!

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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