What happens if I’m having trouble making my installment agreement payment?

If you’re having trouble making payments on your installment agreement, it’s always a good idea to call the IRS and let them know.

If it’s a temporary situation, say somebody lost their job for a month or your hours got cut back for a few weeks, then I would just ask the IRS for little bit of time.

In many instances, they will give you a month or two. They will basically reschedule your installment agreement to continue on a certain day and forgive those few months in which you were supposed to make the payment. That’s the preferred way of doing things.

Don’t just forget to make the payment or ignore the IRS. They don’t know what’s going on in your life. All they know is that you didn’t make the payment and that’s not a good thing.

Now if something more tragic has happened in your life, somebody has died or lost his or her job, and your financial situation has changed significantly and I would suggest calling the IRS.

You might have to amend the terms of your installment agreement to a lesser amount. It might be that you have no ability to pay anymore because your income has gone down so much.

So if you have an installment agreement and you’re having trouble making the payments, don’t just quit making the payments.

Contact the IRS and either get a little additional time to make those payments, renegotiate into a lower payment, or possibly look into some other solutions such as currently not collectible or offer-in-compromise.