An IRS installment agreement can provide much-needed relief from the burden of tax debt. That relief hinges, however, on your ability to make installment payments on time. Life happens, and sometimes, even the most responsible taxpayers miss payments. The consequences can be harsh, with your account potentially going into default if you fail to take action. Thankfully, multiple options are available to those struggling to keep up with installments. Follow these steps to avoid harsh consequences from the IRS:
Make Payments As Soon As Possible
The IRS may seem like the ultimate antagonist, but it’s ultimately in the agency’s best interest to secure regular payments — even if one arrives a few days late. The IRS typically does not cancel installment agreements at the first sign of late payment; as long as you avoid making lateness a habit, you should have nothing to fear.
Contact the IRS
If you have a history of paying late or worry that too much time has passed since the most recent due date, consider getting in touch with the IRS to prevent your account from going into default. By making your situation known, you can dramatically reduce the likelihood of unintended consequences, such as fines or liens.
Seek Help From a Trusted Tax Professional
Interacting directly with the IRS can be nerve-wracking when you’ve fallen behind on payments. A tax professional can advocate assertively on your behalf, taking every step necessary to prevent your account from going into default. With an enrolled agent’s help, you could secure grace for a missed installment or even lower payments in the future.
As you get started on the checklist above, don’t hesitate to get in touch with the Highland Tax Group. We can advocate on your behalf as you deal with the IRS. Reach out today at 720-398-6088 to learn more about our IRS installment services.