Tax Payments and Refunds

What is the total amount of savings bonds that a taxpayer may purchase with a single tax refund?

$5,000. The amounts must be multiples of 50s

What payment methods are available for making required tax payments?

Check, money order, credit/debit card

A taxpayer with a tax liability below $_______ can file an installment agreement without providing financial information.

$50,000

What are the conditions that must be met that guarantees the IRS will accept your installment agreement request?

1) Tax owed is less than $10,000 2) Has filed timely returns and paid all income tax in the last 5 years. 3) IRS determines that the person cannot pay the tax owed 4) Person agrees to pay the tax owed in full within 3 years.

Generally, you must file your claim for a refund within __ years after the date for filing your original return or within ___ years after the date you paid the tax, whichever is later

3, 2

If a taxpayer wants to deposit their refund into 2 or more accounts, they should file Form ____

888.

What can a taxpayer do with their refund?

Apply it to next year's tax liability, get in in a check, direct deposit, deposit it into an IRA (except Simple's)

What is Form 9465

Installment Agreement Request

What kind of IRA can a refund not be deposited into?

Simple

Who chooses the date when installment payment is due?

The taxpayer can choose the day of each month the payment is due. This can be on or after the 1st of the month, but no later than the 28th of the month.

When is Form 8888 filed?

To deposit a refund into more than 1 account or to use a refund to buy US savings bonds,

When should a taxpayer not file Form 9645 (Installment Agreement Request)?

When they can pay the full amount within 120 days, is in bankruptcy, or the IRS has accepted an offer-in-compromise from the taxpayer.

Installment payments of tax liability are made in equal _________ payments?

monthly

A taxpayer with a tax liability over $50k can be granted an installment agreement if they ___

pay down the balance below $50,0000 before filing the installment agreement.