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Default IRS Installment Agreement

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If you know you cannot make the agreed upon monthly payment with the IRS—have your IRS resolution expert call them before you default.  The IRS is much easier to deal with if you show that you are making an effort to take care of your tax debt in a responsible manner.  The IRS will require you to renegotiate a new payment plan once you go into default.  This can be good or bad.  It is good if you now qualify for a lower payment plan or an IRS currently not collectible status.  It is bad if you qualify for a higher monthly payment because income has increased or allowable deductions have decreased.  

On occasion we will have a client strategically default on a payment plan so that we can negotiate a lower payment amount, no payment amount or an offer in compromise.  The IRS will not renegotiate monthly payment amount without defaulting on your current installment arrangement.

To find out more about IRS payment plan options please refer to my IRS Help Blog for my most recent post about IRS payment plans or installment arrangements.