Is the IRS required to grant me an Installment Agreement?

The IRS is not required to grant you an Installment Agreement.

Generally, if you qualify for an Installment Agreement they’re going to give you one, but there are situations in which they’re not going to give you an Installment Agreement.

The IRS is not going to give you an Installment Agreement if you have unfiled tax returns. For them to grant you an Installment Agreement, you need to be current on all of your taxes.

The IRS is not going to grant you an Installment Agreement if you cannot agree on the amount of the Installment Agreement. For example, if the IRS says that you can pay $1,000 and you think that you can only afford to pay $100, they’re not are not going to grant you an Installment Agreement.

The IRS is not going to grant you an Installment Agreement if they look on the Collection Information Form and see that you have significant assets. This could be equity in a home, in which they’re going to ask that you borrow against the home. This could also be retirement accounts and other assets.

If the IRS thinks you have the ability to borrow against or cash in those assets, the IRS wants to be seen as the lender of last resort, not the lender first resort.

So the IRS is going to look at your assets and if you have the ability to either liquidate or borrow against assets, they’re not going to grant you an Installment Agreement.

The three reasons for the IRS not granting you an Installment Agreement are

1) you’re not current on all of your tax filings,

2) you can’t agree on an amount with the IRS, or

3) you have significant assets that the IRS wants you to liquidate or borrow against.