May 28, 2013
With an IRS payment agreement there are monthly payments that must be made to the Internal Revenue Service or the New York State Department of Taxation and Finance. Sometimes these payments are missed, either because they amount was too high, or the taxpayer just did not make the payment. Even if it was not intentional, IRS payment agreement can go into default.
Taxpayers can avoid defaulting by:
- Paying the minimum amount due each month
- File all necessary tax returns on time
- Pay all tax debts owed in full and timely
- Make all scheduled payments
- Read your notice carefully because it explains what you have to do since you defaulted in the installment agreement
- Make your payment before the termination date so to minimize the chance the installment agreement terminates.
- Contact the IRS immediately to see if you can get your IRS payment agreement reinstated.
Sources:
- http://www.irs.gov/Individuals/Understanding-your-CP523-Notice
- http://www.irs.gov/Individuals/Payment-Plans,-Installment-Agreements
- http://www.irs.gov/irm/part5/irm_05-014-011.html