Life is complicated. Sometimes despite making every correct decision, we can still fall behind. Very few people actually intend to fall behind on their 1040 taxes, and even less intend to default their installment agreements. If you find yourself in a difficult situation where you can’t make your monthly IRS installment agreement, don’t panic. You still have options available.
First, if you aren’t going to be able to make your monthly installment agreement payment, you need to inform IRS by calling them at 1-800-829-1040. It may sound like an unpleasant call to make, but the alternative is that IRS will notice that you defaulted your installment agreement and they may immediately issue levies. Make sure to have your account information, social security number, and current financial information ready for the call.
Second, if you can make up the missed payments, it’s recommended that you do so immediately. IRS will often re-instate installment agreements if you are able to pay back what you missed and get current with your installment agreement. Just make sure to confirm with 1-800-829-1040 that they will be reinstating your plan if you make up the payments.
Third, if you are in a situation where you cannot afford to make any payments at all, you should consider providing financial information to IRS after calling 1-800-829-1040. If you are in a hardship situation where your reasonable living expenses are greater than your income, IRS could consider negotiating the monthly amount of your payment or your tax account could be temporarily marked as currently not collectible so you have time to recover.
If you are member of the Clergy who has back taxes owed to the IRS or state, Clergy Financial Resources can help. Visit https://www.clergyfinancial.com/services/tax-resolution/ today for more information.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (763) 425-8778
Fax: (888) 876-5101