For taxpayers who can’t afford to pay off their tax debt in full, the IRS provides the option for entering into a monthly payment plan / installment agreement. Long-term and short-term plans are available if you are unable to repay the tax debt in less than 180 days from the time you receive an IRS balance due notice. When job loss, unexpected medical bills or other financial hardships prevent you from making monthly payments on an IRS payment plan, always contact the IRS as soon as possible. Neglecting to make payments as scheduled without notifying the IRS of changes to your financial situation could result in the IRS placing a lien on your assets.
Does the IRS Grant Extensions on Tax Debt Payment Plans?
You can make changes to your payment plan by logging into the IRS Payment Agreement Tool. This tool allows you to revise payment dates, monthly payment amounts and current plan types without having to call the IRS. However, when revisions to your repayment plan do not meet certain requirements, you will be asked to go back and make adjustments. If you can’t make the minimum payment amount expected by the IRS, you will need to complete and submit Form 433-F (Collection Information Statement). This form asks about your current financial condition with respect to wages, bank accounts, and assets in order to determine if you can satisfy your tax debt. In some cases, the IRS will grant an extension that is typically no longer than six months.
What Happens When a Taxpayer Stops Making Payments on a Tax Debt Repayment Plan?
If you have been making regular monthly payment plans on a tax debt and stop making those payments without contacting the IRS, you will start receiving IRS balance due notices in the mail. Eventually, one of these notices will warn you about a possible federal lien being placed on your property, vehicles or other assets. Your wages may be garnished as well.
Wiztax Free Online System Can Help You Get Immediate Tax Debt Relief
If you received an IRS balance due notice or you’re already on an IRS payment plan and can no longer afford your monthly payments, Wiztax can help. By answering a few simple tax questions, Wiztax will instantly show your tax resolution options. Wiztax will display your Hardship Status eligibility and whether or not you qualify for an Offer in Compromise (OIC) to settle your tax debt for less than the full amount owed.
Wiztax takes the headache and stress out of completing IRS forms by guiding you through each section and filling out all the forms for you. Find out how we can help you settle your tax debt as quickly and painlessly as possible!
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