How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10131
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

I have an 120 day installment agreement with the IRS to pay

Customer Question

i have an 120 day installment agreement with the IRS to pay taxes on an amended return. I made 2 payments but I am unable to make the last payment within the time frame. i tried to call the IRS but it is very difficult to reach a live operator. what is going to happen now?
Submitted: 1 month ago.
Category: Tax
Expert:  Lane replied 1 month ago.

Hi,

...

The installment will go into what's called default status. (Don't let this overwhelm you ... just want to get the details out here)

...

Here's the detail from the IRS internal manual:

..

5.14.11.3 (01-01-2015)
Reasons for Proposing Termination (Defaulting) of Installment Agreements

  1. The Internal Revenue Service may propose termination of (place in default) installment agreements if taxpayers:

    1. fail to pay an installment payment when due under the terms of an agreement;

    2. fail to pay another tax liability at the time such liability is due;

...

Then, from 5.14.11.4 (01-01-2015),

...

"When a taxpayer does not meet the terms of an installment agreement, she or he will be notified in writing and given 30 days to comply with the terms of the agreement before the agreement is terminated."

...

SO, you likely have some time.... BUT it's very important that you find a time where you can wait, curl up with a good book, and make contact. The next thing you 'll get, if you can't contact them and let them know how you intend to get it back on track.

...

If not, you'll receive Notice CP 523, Installment Agreement Default Notice — Notice of Intent to Levy.

Expert:  Lane replied 1 month ago.

If you never contact them so that they can note the system, the agreement will stay in default ... even in you sent in two payments right now (one payment late and another early).

...

I hope you’ll rate me (using those stars, or faces on your screen, by clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content. Otherwise I’ll receive no compensation for the work here at all, from JustAnswer.

Thank you!

Lane

I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

Customer: replied 1 month ago.

So you mean that I need to call them and ask how to resolve this?

Can they give me an extension? We owe $1000 by the end of October.

Expert:  Lane replied 1 month ago.

Sorry ... didn't see that you had come back.

...

yes, you need to talk to them. ... and yes, they WILL many times give you an extension if you can give them a reason (loss of job, less income, health issues, etc.)

...

When you call... you'll want to have all of that information close at hand