Yes, if it is the first time you have defaulted and you contact them as soon as you can after failing to make your payment.\u00a0 In most cases you will have to bring yourself current on the payment due and the payment missed to be reinstated.<\/p>\n
If you have defaulted more than once, and you are an employee, the IRS will likely garnish your paycheck for the monthly amount.\u00a0\u00a0 If you have defaulted and are several months behind, the IRS will likely require new financial information to verify the amount they want you to send in each month.\u00a0 This can be a good thing.\u00a0 If you have been unable to make your monthly payment because your income has gone down or an allowable expense has increased, the IRS will reduce your monthly payment accordingly.<\/p>\n
There are some situations when strategically defaulting on a payment plan should be done to reduce your payment.\u00a0 If you are considering this, you should make sure your actions will improve your resolution of the tax debt.\u00a0 This would be a good time to have a consultation with a resolution specialist. Scott Allen EA is located in Mesa Arizona and you can schedule an in person or phone appointment to discuss your specific situation.<\/p>\n
Scott Allen E. A.<\/p>\n
Tax Debt Advisors, Inc<\/p>\n