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How much can i save before seizure?
Hey folks! I'm hoping that someone here can answer my question here being that I didn't see a category for it! I've been making my payments to the IRS on back taxes, and overall, I've been on time. My first question is; Even if I'm sending my payments to the IRS thru my bank days before my payment due date, it seems to get to them after the date. Does the IRS understand that I posted the money thru my bank 5 days beforehand and it's their fault it's late? It's like paying by mail ( money order) is faster WTH!?! My second question is that I'd like to know how much I can save in my bank account. I'd like to put away some money for either a vacation or for another car for my wife, but if I put a few thousand away, will the IRS seize it even if I'm making my payments? Thanks for the answers!
4 Answers
- Max HooplaLv 77 years agoFavorite Answer
You have to mail your payment early enough so that IRS receives it by the due date. If you had a direct debit installment agreement you wouldn't have to worry about this.
On the next subject, until IRS formally notifies you that your installment agreement is in default, it can't take any enforced colelction action.
- Bostonian In MOLv 77 years ago
Unlike filing a tax return where the postmark date determines the filing and payment dates, if you are on a payment plan the IRS goes by the date that the payment is received. This is standard practice in the credit industry. If you mail a credit card payment the day before it's due it will almost certainly be late and the IRS uses the same concept.
Do yourself a favor and modify your agreement to allow the IRS to take the funds directly from your bank account. That way your payments are always treated as being on time as long as the bank does not reject the transaction. As a bonus, your penalty rate will be reduced if you allow the IRS to take the funds directly from your account.
- SlickterpLv 77 years ago
Doesn't matter when you posted it, matters when they get it. Have it posted earlier, then it won't be late. It is YOUR fault it's late, as you aren't allowing enough time.
The smart thing to do is to use the extra money to pay the debt so you don't have to worry about it and you can stop paying interest. Worry about a vacation later.
When you are late, you can default on your plan. When you default, they can levy accounts, etc. If you have a bunch of money saved, they are not going to feel bad about you not having paid on time.
- troLv 77 years ago
to be sure of the date that IRS receives the payment, it might be wiser to use the money order and mail it well enough in advance that it will arrive by the due date
as long as the installment agreement is being met, that will remain in place and liens will not be put on your account
