Taxpayer only owes $4223 for 2017-2019. He HAD an installment agreement in place – paying $250/month. He logs into IRS.gov once a month and makes the payment. He has made all payments to date. According to his transcript, the Installment Agreement was terminated on 3/2/2020. Not sure why? He is in fact, out of compliance. I imagine this is the reason. He owed tax on his 2019 return, but that was not filed/accepted until 3/6/2020.
He would like to re-instate, or re-structure the payments and increase to $350 or $400/mo.
I imagine, the IRS COULD demand financials since he defaulted on prior, but doubt they are concerned about such a small debt. He is ready to do automatic debit. Can I do this on-line to save him some on the application fees? Or, better to do on the phone?
Side note: On THS, it shows under-reported income by $164,000 on 2019. Did not report the 1099-S. He sold a personal residence – which will be exempt from any capital gain. A simple 1040X will fix it. Is IRS likely notice this and perhaps deny the installment agreement? (I was thinking to prepare the 1040x, call IRS, fax it to them while on phone if they ask).