Recent Feedback
I am on a payment plan with the IRS for back taxes - $455 a month. It is a 4 year plan to pay off about 25k. As of now, I have paid about 1.5 years worth. As of August 15th I am being laid off because my company going under), and until I find another job, it will be difficult/impossible to make the payments to the IRS on unemployment checks. I have no liquid assets, a small investment account and 401 that are severely devalued right now. I am 59 years old and own only a small apartment with a mortgage of about 78K - it is the only real estate I own and my primary residence. I am very worried that if I don't make my payments I will be considered delinquent and the IRS will seize my home. Can this happen? What can I do to prevent this?
If you stop making payments - you will be considered delinquent by the IRS.
It rare happens that the IRS seizes the primary home - but they certainly will register a lien - and you will not be able to sell or refinance without paying the tax debt.
Throughout the term of an installment agreement, your payments must be made on time. If your payments cannot be made due to a change in your financial condition, you should contact the IRS immediately. Failure to make timely payments could default your agreement. A default of your installment agreement may cause the filing of a Notice of Federal Tax Lien and/or an IRS levy action. Either can have a negative effect on your credit standing and cause financial difficulties.
Generally, IRS enforced collection actions (i.e., levy against personal or real property) are not made while an installment agreement request is being considered, or: -- While an agreement is in effect, -- For 30 days after a request for an agreement has been rejected, and -- For any period while a timely appeal of the rejection or termination is being evaluated by the IRS.
I suggest you to call the IRS immediately - 1-800-829-1040.
You may also walk-in your local IRS office -no prior appointment required - let me know your state and I will provide you contact information.
If that doesn't help - you may use Taxpayer Advocate Service - an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.
Call the Taxpayer Advocate Service Case Intake Line 1-877-777-4778 or TTY/TTD: 1-800-829-4059.
Let me know if you need any help.
Experience: Taxes, Immigration, Labor Relations