Will a taxpayer be able to designate any partial payments in excess of the 20 percent paid with a lump sum offer, or in excess of the proposed installments paid under a periodic payment offer?
Yes, if the taxpayer submits the request in writing. All payments will be treated as payments of tax including any overpayments, and applied to the Government’s best interest unless designated by the taxpayer. If the taxpayer requests the overpayment be considered a deposit, the overpayment cannot be designated, but may be refunded if the offer is rejected or returned by the IRS or is withdrawn by the taxpayer. The IRS will not pay interest on the deposit.
No. Any partial payments that are made during the offer investigation that are in excess of the 20 percent lump sum offer amount, or in excess of the proposed installments paid under a periodic payment offer, will be considered a deposit and may not be designated. A deposit will be refundable if the offer is rejected or returned by the IRS or is withdrawn by the taxpayer. The IRS will not pay interest on the deposit.
Related Questions
- Will a taxpayer be able to designate any partial payments in excess of the 20 percent paid with a lump sum offer, or in excess of the proposed installments paid under a periodic payment offer?
- DOL’s web site says that there has been more than $61,000,000 in compensation paid under Part E. How were you able to make payments prior to the issuance of these regulations?
- Aren’t lottery winners able to opt for a lump sum instead of annual payments?
