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Tax Law - Income Tax Law - General Income Tax Law Questions

  Page 31 of 60

I am on a payment plan with the IRS but find I cannot pay. What should I do?
It is important that you contact IRS as soon as you become aware that you can’t make a particular payment or that for any reason you cannot continue the payment plan as it was originally structured. IRS makes a distinction between taxpayers making a sincere effort to pay their debt and taxpayers who show little or no evidence of cooperation. The IRS may modify the plan, suspend it temporarily, or work through the problem with you. But failure to communicate with the IRS can lead to a defaulted payment agreement, which could trigger forced collection action (e.g., tax liens, wage levies).

The IRS also must give you at least 30 days notice of its intent to modify or terminate the payment plan along with an explanation as to why the agreement is being modified or terminated.

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