In this article, you can discover:
- Consequences for failing to meet the requirements of an installment agreement.
- IRS contact methods for notifying taxpayers of actions.
If you’re on an installment agreement with the IRS and you miss a payment, the agreement is usually automatically terminated. On occasion, the IRS has made mistakes in the past where people have missed payments but are still in the agreement. These people are one of the lucky ones, and if they can catch up on their payments, they remain in good standing.
Essentially, there are two key components to adhering to an installment agreement with the IRS. First, you must file all tax returns by the due date or extended due date. Second, you must pay all future tax balances in full on those returns. It is not enough to simply make payments – you must also ensure that your tax returns are filed on time and that all amounts are paid in full. If you fail to adhere to these requirements, the IRS has authority to end the installment plan and ask for the entire tax liability payment in full.
If you’re struggling to pay your taxes, you may be able to negotiate a reduced payment plan with the IRS as well. This is called an Offer in Compromise, and it can help make your tax bill more manageable. Keep in mind, however, that not everyone will qualify for this type of arrangement.
Whether you have an installment agreement or Offer in Compromise payment plan, falling behind on payments can cause the IRS to demand immediate payment. If this happens, you can potentially enter into a new installment agreement. However, this usually comes with a fee, so it’s best to avoid that if possible.
Will The IRS Notify Me Before They Send Me To Collections? What Can I Do If I’m In Collections?
The IRS is well-known for its aggressive collection tactics. If you owe them money, you can expect to receive multiple letters and notices demanding payment. You may also get notices that your balance is due or that you need to call the IRS. While these notices can be daunting, it’s important to remember that you have options and recourse.
If you do end up in collections, you’ll enter a new phase with the IRS where they’ll get more aggressive. This is when you’ll start receiving notices of intent to lien and levy. They’ll warn you first, but if you don’t contact them or come to some agreement, they’ll go ahead and file the paperwork to garnish and seek to pay the debt through the recovery of your assets. So even though it’s collections, the IRS is not like those collection companies that call and harass you.
The IRS is not going to call you and harass you. The IRS will simply file a notice of lien if you own a home or, in extreme cases, garnish your wages or money in the bank. They will not waste time talking to you. They have access to all your records and finances, so they will reach for those resources instead to satisfy the debt.
We cannot stress enough that the IRS is not to be messed with. If they force their hand and file liens or garnishments, there is very little that can be done to stop them. This is why it is so important to try and negotiate with the IRS before they reach this point. While it may still be possible to enter into an installment agreement after a lien or garnishment has been filed, it will be much more difficult.
If you failed to take the necessary steps to resolve your tax debt, the IRS may still file a lien against you – even if you enter into an installment agreement (although the IRS usually does not so long as timely payments are made to the installment agreement). This can happen if you didn’t contact the IRS or let them know that you needed more time to pay. It’s important to be proactive in these situations.
When the IRS places a lien on your home, they now have a legal claim to your property and can take steps to collect the money you owe. If you enter into an installment agreement with the IRS, they may agree to remove the lien once you have paid off your debt in full.
The best way to deal with the IRS is to be proactive and get ahead of any potential problems. Don’t wait for them to take negative action against you – instead, try to work out an installment agreement or offer in compromise. This way, you can avoid having liens filed or levies attached. If you take action early on, you’ll have a much better chance of resolving your issues successfully.
It is usually best to resolve IRS notices and collections sooner rather than later to avoid more severe consequences.
With the guidance of a skilled attorney for Tax Resolution Law, you can have the peace of mind that comes with knowing that we’ll make it look easy.
For more information on Tax Resolution Law in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (305) 606-6139 today.