Can I add a past year’s unpaid tax balance to an already existing payment agreement for another year’s balance?

by Daria D. Palaschak, CPA | Jul 11, 2019

I began working for myself in 2017. I filed 2018 taxes, but not 2017. I have a payment agreement for 2018 where I owe $4,200 and will pay $200 a month. Can I still file 2017 taxes and ask that that balance be added to my existing payment agreement? I’m guessing I owe about $7,000 before penalties. 

Based on my experience with the IRS, you should be able to do this, although any payment plan is subject to IRS approval. I suggest that when you file your 2017 tax return you request a payment agreement by either using Form 9465 (Installment Agreement Request) or filing out an Online Payment Agreement at Form 9465 asks for additional balances still owed to the IRS, even if they are included in an existing installment arrangement. So, the revised balance you would be requesting a payment plan for would include the taxes due for both 2017 and 2018. The same should occur if you submit the online application. You could also call the IRS at (800) 829-1040 to make your payment plan request.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Daria D. Palaschak, CPA, is a tax partner with Sisterson & Co. LLP in Pittsburgh, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Financial FAQs

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.