If you find yourself struggling to pay your taxes, the Internal Revenue Service (IRS) may offer you the option to enter into an installment agreement. This is an agreement that allows you to pay your taxes over time, in manageable monthly payments. However, life circumstances can change, and you may want to modify or even terminate your installment agreement. Here’s what you need to know about how to change your IRS installment agreement.
Firstly, it’s important to understand that you have the right to modify your installment agreement if your financial situation has changed. If you’re no longer able to make your payments on time or in full, you can request to modify your agreement or negotiate a new one.
To modify your installment agreement, you’ll need to submit a request in writing to the IRS. In your request, you should explain why you need to modify your agreement and provide supporting documentation, such as pay stubs, bank statements, and any additional financial information that may be relevant.
The IRS may approve your request to modify your agreement if they determine that you’re experiencing financial hardship. In this case, they may offer you a new installment plan with lower monthly payments or a longer repayment period.
If you’d like to terminate your installment agreement, you can do so by contacting the IRS directly. Keep in mind that terminating your agreement may have consequences, such as interest and penalties accruing on your outstanding tax debt.
To avoid any potential issues, it’s best to try and modify your agreement before terminating it completely. If you’re unsure about how to proceed, you may want to seek the advice of a tax professional or contact the IRS for assistance.
In conclusion, changing your IRS installment agreement is possible, but it requires submitting a request in writing and providing supporting documentation. If you’re experiencing financial hardship that’s preventing you from making your payments, you may be eligible to modify your agreement. It’s important to be proactive and take action if you’re struggling to meet your tax obligations to avoid any penalties or consequences down the line.