South Carolina Tax Attorney

I wrote a short post a few months ago about how the federal stimulus package (i.e. rebate checks) would effect your IRS tax liabilities.  Since then, I have received a number of queries on this IRS Problem Solving Blog about how the stimulus checks will be effected by an installment agreement you already have with the IRS.

As a brief review, an installment agreement is a contract (agreement) between the taxpayer and the IRS where the taxpayer agrees to pay a certain amount of money each month to the IRS in order to resolve their debt including penalties and interest.

While having an installment agreement set up may seem like you have “worked out” your tax problems with the IRS, the IRS does not look at it that way.  In their eyes, you still have an outstanding balance due to them and therefore, they will keep the entire rebate that you are entitled to.