What happens if I don’t file my taxes timely when I have an installment agreement in place?

When you entered into an installment agreement, you agreed with the IRS that you were going to pay your taxes on a timely basis, you were going to file your taxes on timely basis, and you were going to pay the installment agreement on a timely basis.

So if a year goes by where April 15, or possibly October 15, comes and goes and you don’t file your taxes.

Technically, what’s happened is you have not lived up to the terms and conditions of having the installment agreement and the IRS will default the installment agreement.

The IRS will set aside the installment agreement, as if it never happened and they will put you back into what’s known as enforced collection activity.

Enforced collection consists of putting a levy or garnishment on your wages or seizing your bank account.

So it’s always very important when you have an installment agreement in place to file your taxes on a timely basis.