Missed Payment Irs Installment Agreement

Missed Payment on IRS Installment Agreement: What You Need to Know

If you`ve entered into an installment agreement with the Internal Revenue Service (IRS) to pay off back taxes, you may feel relieved that you have a plan in place. However, what happens if you miss a payment? Here`s what you need to know.

First of all, it`s important to understand that missing a payment on your installment agreement can have serious consequences. The IRS may consider your account to be in default, which could result in penalties, interest charges, and even legal action.

If you miss a payment, the best thing to do is to contact the IRS as soon as possible. Explain your situation and ask about your options. You may be able to renegotiate your installment agreement or request a temporary delay in payments.

It`s also important to make your missed payment as soon as you can. The longer you wait, the more penalties and interest charges you may accrue. If you can`t make the full payment, pay what you can and contact the IRS about your situation.

To avoid missing payments in the future, consider setting up automatic payments or reminders to ensure that you make your payments on time. You can also adjust your budget to free up funds or look for ways to increase your income.

Remember, the IRS is not your enemy. They want to work with you to ensure that you pay off your back taxes. By being proactive and communicating with them, you can avoid serious consequences and stay on track with your installment agreement.

In conclusion, missing a payment on your IRS installment agreement is not the end of the world, but it can have serious consequences. Contact the IRS as soon as possible, make your missed payment as soon as you can, and take steps to avoid missing payments in the future. With a little effort and communication, you can successfully pay off your back taxes and avoid legal action.