What happens if I have a balance due on my taxes when I have an installment agreement in place?

When you get an installment agreement with the IRS, you agree to file your taxes on time, pay your taxes on time, and of course make all of your installment agreement payments in the amount specified and on a timely basis.

So if you don’t file your taxes, or you file your taxes but have a balance due, then you might technically default on your installment agreement.

If you have a balance due and you can send in a check for the balance due, all is well.

However, if you’ve got a balance due that you can’t afford to pay, you’re going to technically default on your installment agreement.

The best thing to do is to talk to the IRS and see if they can roll this year into an existing installment agreement.

Many times they’re going to default your installment agreement, start all over, and see what your ability to pay is currently, as opposed to when you initially established the installment agreement.