I am on a payment plan with the IRS but find I cannot pay. What should I do?
Get Legal Help Today
Secured with SHA-256 Encryption
UPDATED: Jun 19, 2018
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
It is important that you contact IRS as soon as you become aware that you can’t make a particular payment or that for any reason you cannot continue the payment plan as it was originally structured. IRS makes a distinction between taxpayers making a sincere effort to pay their debt and taxpayers who show little or no evidence of cooperation. The IRS may modify the plan, suspend it temporarily, or work through the problem with you. But failure to communicate with the IRS can lead to a defaulted payment agreement, which could trigger forced collection action (e.g., tax liens, wage levies).
The IRS also must give you at least 30 days notice of its intent to modify or terminate the payment plan along with an explanation as to why the agreement is being modified or terminated.
For more information, read our section on “Tax Enforcement“.