What happens if I fail to make payments on my installment agreement?

The answer is pretty obvious. If you fail to make payments on your installment agreement, the IRS will default or terminate your installment agreement. When they do so, there will no longer be an installment agreement in place.

Now why is this bad, what does this mean to you? If you don’t have an installment agreement in place, the IRS is going to automatically place you back into enforced collection.

This means they are going to now be able to levy your bank account or garnish your wages, and I don’t think anybody out there reading this really wants that to happen.

So it’s always very important to make all of your agreed-upon installment agreement payments, make them for the amount specified, and make them on time.

As a matter of fact, I would suggest putting them in the mail at least one week, if not a week and a half, before they’re due to allow enough time for the installment agreement payment to get there.

If you fail to make your installment agreement payments, you’re going to default on your installment agreement and when you do, you’re not going to have an installment agreement in place anymore.

If you want another one, you’re going to need to start the process all over. So please, make sure to make those payments and make them timely.