Tax Seminar #3 – December 3 2012

E. MARTIN DAVIDOFF
ATTORNEY AT LAW
December 12, 2008
353 Georges Road - Suite K
P.O. Box 835
Dayton, NJ 08810-0835
EMD@taxattorneycpa.com
_____________
TEL: 732-274-1600
FAX: 732-274-1666
VIA FIRST CLASS MAIL
Mr. William Skowron
123 Yankee Way, Unit 1B
New York, NY 10022
Dear Bill:
RE: Installment Agreement
Forms 1040; Year 2002 through 2004
This letter shall confirm that an Installment Agreement has been entered into on your behalf with the
Internal Revenue Service (“IRS”). Attached is the IRS letter of November 30, 2008 confirming the
information below. Please carefully review this letter.
Payment Due Dates and Amounts
First Payment Due: December 27, 2008 Total Amount Due: $14,351.39*
Future payments due: 28 th of each month
Installment Payment Amount: $500.00
* As of 11/30/2008; Note that interest & penalty
shall continue to accrue.
Future Compliance
One of the conditions of the installment agreement is that you are required to remain compliant with the
IRS during the term of this installment agreement. For example, this means that you must file your 2011
income tax return by April 17, 2012 or properly file an extension request by April 17, 2012 and file your
return by October 15, 2012. REMEMBER: Your 2011 tax liability must be paid in full by April 17, 2012,
even if you file an extension request. You may only extend the time to file your return, not to pay the tax.
Again, you must follow this practice consistently throughout the term of your installment agreement.
Your failure to remain compliant during the term of the installment agreement will result in the
termination of the installment agreement and potentially aggressive actions by the IRS.
Refund Offset Program
As you plan on staying current going forward, please keep in mind that any future refunds will be retained
to pay down any debts due to the IRS, including the liability which is the subject of this letter. Such refund
offsets will not be applied to monthly payments under this agreement. Some people find this to be an
advantage as it speeds up their repayment to the IRS. Others prefer to reduce their withholding to eliminate
overpayments so they have more funds to live on month-to-month. You should carefully plan your current
year payments to the IRS whether such payments are made through withholding or estimates.
We suggest you have a conversation with your financial and/or tax advisors regarding the number of
exemptions you are claiming for withholding and/or the level of your estimated income tax payments.
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