Amending IRS Installment Agreement: What You Need to Know
The IRS offers taxpayers the option to pay off their back taxes through an Installment Agreement, allowing them to make monthly payments over time. However, the agreed-upon terms of these installment agreements may change depending on your financial circumstances. This is where amending IRS installment agreement comes into play.
If you find yourself in a situation where you can no longer pay your monthly payments or you need to adjust the terms of your installment agreement, amending your agreement can provide some relief. Here are some steps you need to follow to amend your IRS installment agreement:
1. Check if You Qualify for a Change in the Agreement
Before you can request an amendment to your IRS Installment Agreement, you must qualify for a change. You can qualify for changes in your agreement if you have:
– A change in your financial circumstances
– A change in your employment status
– An increase or decrease in your income
– Changes in your expenses, such as medical expenses or child support payments
– Other situations or circumstances where paying the original agreement would be a hardship
2. Review Your Current Installment Agreement
To amend your installment agreement, you must know the current terms of your agreement. Review the agreement to ensure that you understand all applicable terms and conditions before requesting a change.
3. Determine the Changes You Need
Determine the changes you need with your installment agreement before making a request. For instance, if you can`t pay the agreed-upon monthly payments, you may ask for a lower payment amount or request to skip a few payments instead.
4. Make a Formal Request
To amend your installment agreement, you must make a formal request to the IRS. You can make this request through a written letter or by calling the IRS. Provide your name, social security number, and tax ID number. Explain your changed circumstances and the requested change to your installment agreement.
5. Wait for the Response
Once you have made a formal request, you must wait for a response. The IRS will typically respond within 30 days, but it may take longer. The response may also come through the mail or phone call.
In conclusion, if you find yourself unable to pay your IRS Installment Agreement payments or need to adjust the terms of your agreement, follow these steps to amend your installment agreement. Keep in mind that the process may take some time, and you must qualify for a change in your agreement. If you are unsure of your options or need more information, consider consulting with a tax professional who can help you navigate the process more efficiently.