Can You Reduce Your IRS Installment Payment?
Are you currently making payments to the IRS through an installment plan? What if your monthly payment to the IRS becomes too expensive? If it does, you may be eligible to make changes to your payment plan. These changes can include changing your payment due date, decreasing your scheduled payment amount, and in certain cases skipping a scheduled payment without defaulting. Learn more with the help of Business Tax Settlement today. Contact our team to start discussing your changes.
What are the rules to reduce an IRS installment payment?
There are several different rules that must be followed, including:
- You must be up-to-date on your current payment plan. But, if you are not currently defaulting and re-establishing, the agreement is still an option.
- The IRS says that you may be able to decrease your scheduled payments by up to 20% of the current payment amount. If your ability to pay is much less, renegotiating your realistic ability to pay is also possible.
- The IRS assumes your Installment Agreement will still be paid within the required time period. (But, see the next item below).
- There are easier rules for gig workers and freelancers that owe less than $10,000.
If decreasing your payments will cause your Installment Agreement to take longer to pay, you could still be eligible for a decreased payment amount. In some cases, you will continue making the current payment until the change is approved.
Be careful! Don’t let this problem repeat. Always take action before the IRS takes action against you.
Circumstances sometimes change. If you are unable to make that payment due to unexpected circumstances, you may be able to skip your upcoming payment without penalty. For more information about skipping a payment, you can watch this short video or reach out to our team.
Get Help Today
An experienced tax attorney will be able to help you answer questions and navigate the necessary processes. Contact Business Tax Settlement today to discuss your options and get the help you need.