The financial issues that made it impossible for you to file or pay your taxes on time have not gone away — and now, you’re struggling to make your monthly IRS installment payments. Keep these next steps in mind as you determine how to proceed:
Don’t Ignore the Problem
Missing even one installment could cause your account to go into default. You may be asked to pay the remainder of your tax bill at once — or risk action from a collection agency. It may be possible to reinstate your account, but you’ll likely be required to pay a hefty reinstatement fee.
Make the Payment As Quickly as Possible
If your missed payment was simply a matter of forgetfulness, it might not be too late to pay up and avoid consequences. Let the IRS know that, while you missed the initial deadline, you have since made your payment and would like to avoid going into default.
Seek a Payment Reduction
If changing circumstances keep you from making your previously agreed-upon payment, it might be possible to secure lower payments. The sooner you or a tax representative get in touch with the IRS, the better. You may need to provide considerable documentation of your new financial circumstances, but this effort will pay dividends if it leads to a more manageable payment.
Prevent Future Missed Payments
The IRS will typically forgive one or two mistakes if you’re forthright and attempt to make amends — but continued missed payments could spell big problems down the road. In addition to seeking reduced payments, it may behoove you to sign up for direct deposit. This will take memory out of the equation, as long as your account is funded enough to cover your payment.
Did you miss an IRS installment? Don’t panic — it may still be possible to maintain your installment plan. Contact the experts at the Highland Tax Group today to learn more about your options.