The IRS Rejected Your Installment Agreement: What Can You Do Now?

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The IRS provides several solutions for dealing with tax debt. Unfortunately, these aren’t always as easy to obtain as the agency would have you believe. Rejected installment agreements are common — and when these are turned down, your prospects for resolving your debt can seem all but hopeless.

Don’t throw in the towel just yet. Depending on why and how your installment agreement was rejected, you just might be able to come up with a viable solution. Keep reading to learn which options are available and how you should proceed.

Appeal the Rejection

Before you start researching various tax debt strategies, begin with the simplest solution: appealing the rejection as soon as possible. The IRS offers an appeals process, which involves writing a protest and sending it by mail.

You can also complete IRS Form 9423 — the Collection Appeal Request. This should not be sent to the IRS Independent Office of Appeals. Instead, mark the protest or form with the address mentioned on the letter the IRS sent explaining your appeal rights.

At this point, the IRS office that originally initiated the collection action will consider your protest. This office may reach out to you in an effort to resolve your issues. If this proves impossible, however, your case will be forwarded to appeals. By now, it behooves you to work with an enrolled agent.

Consider Other Solutions

Depending on your situation, it may be worth thinking about alternatives to the typical IRS installment agreement. An offer in compromise, for example, might be a genuine possibility. Getting these accepted can be even more difficult than securing an installment plan, however, so you’ll want to get help from a professional as you apply.

Not sure how to proceed after suffering a rejected installment agreement from the IRS? Our team is here to help. Contact us today to learn more about your options.