3 Things To Do To Fix An IRS Installment Denial

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Tax debt may be stressful, but for many people, the opportunity to create an installment agreement provides a much-needed sense of hope, but what happens during an IRS Installment denial? What happens if the IRS rejects your request for an Installment Agreement? Before you panic, keep the following in mind:

Determine Why Your Original Request Was Denied

When appealing, you may have better luck if you know why, exactly, the IRS turned your original plan down. Denials are common in applications with incorrect or misleading information, including math errors, or underreported income. If your initial request was denied because of an honest mistake, a different outcome may be possible if you provide accurate information.

Talk With a Manager or a District Director

Do you suspect that the IRS representative in charge of your application made a mistake? If so, try for a second opinion from a higher-level IRS employee. If possible, get in touch with a manager or even a district director. It may help to have a tax representative reach out on your behalf.

File a Collection Appeal Request

In the first thirty days after your installment is rejected, you can file Form 9423: the Collection Appeal Request. While this document is often used for appealing collection actions such as levies or federal tax liens, it’s also applicable when installment agreements are rejected or terminated.

Form 9423 is simple: provide basic information such as your address and Social Security Number, as well as a checkmark by “rejection of installment agreement” in box 14. Next, explain why you disagree with the rejection. This should be accompanied by a detailed explanation of how you believe your tax concerns should be resolved.

If you’re determined to avoid IRS installment denial, be sure to make your initial request with help from the Highland Tax Group. We’re also happy to help you with the appeal process, if necessary. Contact us today to learn how we can be of service.