You held only the best intentions when you sought an installment plan with the IRS. Unfortunately, you have since discovered that your installments are too high for you to realistically handle. This is a terrifying discovery — fail to pay up, and you could be in for big trouble with the IRS. Thankfully, options are available for requesting additional time or even permanently reducing your monthly payments.
Request a Month Off
If you’re proactive, you may be able to take a month off from your installment plan, or, at least, make a reduced payment. The sooner you get in touch with the IRS to request a breather, the better. Keep in mind, however, that you may be asked to provide a reason for the delay or verify your current financial woes. Plan to make your request well in advance, as the IRS will prove far less accommodating if you’ve already missed your installment due date.
Reduce Your Monthly Payment
A brief reprieve won’t cut it for all taxpayers. If you are really struggling with your finances, you may require a long-term reduction in installment levels. Depending on your current financial status, you may be eligible for reduced payments. First, however, you’ll want to gather proof of your current financial situation.
While the IRS advises calling as soon as you realize you cannot pay, you don’t necessarily have to deal with the situation on your own. A tax resolution service can negotiate future payments on your behalf to ensure the best possible outcome.
You’ll find it far easier to arrive at a viable IRS solution if you work with a trusted tax resolution service. Let the enrolled IRS agents of the Highland Tax Group act as your valued advocates during this difficult time. Reach out today to learn more about your options for dealing with the IRS.