Before requesting a payment plan
- Confirm all required returns have been filed or are being addressed.
- Verify the current IRS balances and tax periods.
- Review current income, necessary living expenses and available assets when financial disclosure may be required.
- Determine whether a streamlined or financially based request is appropriate.
Payment plans do not stop interest
Interest and applicable penalties generally continue while a balance remains unpaid. A payment plan is a collection arrangement, not a reduction of the underlying balance by itself.
When financial statements are involved
Some cases require financial disclosure to the IRS. Accurate income, expense, asset and liability information is important because those figures can affect the payment amount and available collection alternatives.
Representation and follow-through
Roberto E. Ruiz, EA can assist with IRS collection matters when properly authorized, including communication about installment-agreement requests.
Frequently asked questions
Can everyone get an IRS payment plan?
Not automatically. Eligibility and terms depend on the balance, filing compliance, prior agreements and other account facts.
Will penalties and interest stop?
Generally, interest and applicable penalties continue to accrue until the tax is paid.
What if I cannot afford the proposed payment?
A different collection analysis may be needed, potentially including financial disclosure and review of other available IRS collection alternatives.