Tax Procedure Q - Proactively Send Payment For Taxes Owed Without IRS Requesting It?

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dublin
Posts: 125
Joined: Sun Aug 28, 2011 2:12 pm

Tax Procedure Q - Proactively Send Payment For Taxes Owed Without IRS Requesting It?

Post by dublin » Mon Nov 13, 2017 5:47 pm

Hi all, would be grateful for any advice with this situation.

I filed my 2016 1040 in mid-October, right at the extended deadline. A week or so ago, I received a letter 12C from the IRS asking me to fill out form 6251 because their review indicated that I might be liable for AMT (which I've never paid before).

I went ahead and filled out Form 6251, and lo and behold, they were right, so I do owe AMT of a couple hundred dollars.

The strange thing is that nowhere in the IRS letter does it say what I should do if 6251 indicates that I owe additional tax from the AMT. The letter specifically says not to send in a form 1040x, but makes no mention of sending a payment.

What would be the best course of action here? I could:
a) Make a direct payment of the AMT amount online today, while mailing in the form 6251
b) Mail in the 6251 and wait to see what the IRS says/asks of me

My concern with b is that it might mean additional interest and/or penalties by the time I hear back from them again. But it also seems odd to just make a payment out of the blue when it wasn't asked for.

Also, shouldn't a 1040x figure into this in some manner? Or does it not, because (it appears) the IRS has held off on processing my return because of this issue?

Thoughts?

MarkNYC
Posts: 1203
Joined: Mon May 05, 2008 7:58 pm

Re: Tax Procedure Q - Proactively Send Payment For Taxes Owed Without IRS Requesting It?

Post by MarkNYC » Mon Nov 13, 2017 6:57 pm

I suggest you follow the instructions on the IRS notice by sending them the completed Form 6251 without payment. Sending in an advance payment may create some confusion and may result in additional unnecessary correspondence. You should not be concerned with the additional 4-6 weeks it may take for the IRS to send you a request for payment. There should be no penalties and the additional interest should be negligible.

Form 1040x is not applicable because there is no change to the income, deductions and credits shown on your originally-filed tax return. The IRS is just trying to determine the correct amount of tax that applies to the tax return, hence the need for Form 6251.

dublin
Posts: 125
Joined: Sun Aug 28, 2011 2:12 pm

Re: Tax Procedure Q - Proactively Send Payment For Taxes Owed Without IRS Requesting It?

Post by dublin » Tue Nov 14, 2017 1:35 pm

Thanks Mark, I appreciate the input, I'll probably go ahead and do as you suggested.

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