Will seizure occur even if i am paying regularly, being refused an installment agreement?

Forum|Forum|3 years ago
May 23, 2022
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I have been told by research and a few in person accounts that the irs will work with you so long as you are paying regularly even if you dont pay it all within a certain timeframe. what about if i was denied an installment agreement? even if i am paying regularly, wouldnt that halt seizures/ collections?

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Best answer by Mike9241

Okay, that helps. So there is still the possibility of seizure. What is the likely hood they'd go after my property or investment assets even if i'd got an agreement and if i'd been paying regularly, probably double payments?

the IRS is not supposed to grant an installment agreement unless and until you are in full compliance, meaning that all tax returns have been filed. see this link

https://forst.tax/installment-agreement/

you may be right about not being required to make a large down payment on an IA. it's been years since I helped a client with unpaid taxes and at that time the IRS wanted the largest down payment the taxpayer could afford (taking into account what he needed to provide for himself) this included financial disclosure.

here's some more

https://www.thebalance.com/installment-agreements-3193406

Mike9241

if you are able to pay in full immediately and still be able to provide (reasonable amounts) for your food, clothing and shelter, it is highly unlikely the IRS will grant an installment agreement (IA) nor would an offer in compromise be accepted.

info on IRS payment plans

https://www.irs.gov/payments/payment-plans-installment-agreements#eligibility

failure to pay penalty and there is interest also

https://www.irs.gov/payments/failure-to-pay-penalty

IRS discussion of its collection process (when bills are ignored)

https://www.irs.gov/pub/irs-pdf/p594.pdf

info on what can happen if you default on an IA

https://www.mdtaxattorney.com/resources/what-happens-if-i-default-on-my-irs-installment-agreement/

I would advise seeing a specialist ASAP

the short version is that if the IRS does not grant an IA, you'll get a bill (how soon is unknown) and if that isn't paid in the timeframe specified the IRS will start the collection process.

Ron_PaxtonAuthor

thankyou Mike, anyone else?

Critter-3

Mike's answer is complete. Depending on the amount you owe, if you will not be able to pay it off within a 5 year period (including the interest), the IRS can put you into collections. Seek local advice from a tax attorney for a complete answer for your situation.