We have had to revisit installment agreements for various different reasons. A few reasons have been for lack of payment, accrual of additional taxes, failure to remit timely payments, and so forth. What is important to remember is the installment agreement usually can be reinstated rather quickly. The appropriate and following steps must be taken:
– Contact us right away and fax any and all notices to our attention if you think you have defaulted
– We will read all notices and determine the next steps as to how to deal with the defaulted agreement.
– Once the next steps are determined, make sure all notices are calendared and appeal rights are adhered to
– A financial statement form may need to be revisited, however, we will attempt to call the IRS on your behalf to reinstate the agreement
– If a financial statement is necessary, we will assist you in the process of filling a 433-A or 433-B out as well as meeting all necessary requirements the IRS may have
Usually the IRS will reinstate the agreement, charge a user fee, and you will need to start making payments immediately. It is important to remember that once an installment agreement is reached, pay close attention to the terms of the agreement. The following must be maintained throughout the duration; staying current and compliant, filing current returns timely, paying current taxes timely, paying installment payments on time and in full by the due date, taking notice of any addition or increase to the agreement, taking notice of a 1 or 2 year financial review once the agreement is set up, paying any and all notices if additional tax, penalty, or interest amount is accrued and informing the IRS as such.
Remember, if you are a current client and your agreement defaults, please contact us immediately to assist you with the reinstatement work involved.