Installment Agreement FAQsunfiled-tax-return-faqs

Can the IRS levy my property if I am in an Installment Agreement?

  • The IRS usually will not levy your bank or property if you have an Installment Agreement setup with them.

Can the IRS put a tax lien on my property if I am in an Installment Agreement?

  • Yes, the IRS may put a tax lien on your property during an Installment Agreement just to secure themselves against other creditors with interest in your property.

What if I miss an IRS Installment Agreement Payment?

  • A defaulted Installment Agreement could lead to you receiving CP Letter 523, Notice of Federal Tax Levy. Remember, missed payments, breaks the agreement with the IRS. This can have a negative effect on your credit and cause serious financial difficulties.

Can I use the IRS’s Online Payment Agreement to setup an Installment Agreement for 2008 even if I filed and have yet to receive an IRS Bill?

  • Yes. You can setup a “pre-assessed Installment Agreement” according to the IRS. With Form 9465 it is best to wait for your bill or call the IRS.

What Are Some Payment Methods the IRS May Accept for the Monthly Payments?

  • Direct Debit from your bank account
  • Payroll Garnishment from your work paycheck
  • Money Orders or Personal Checks
  • Electronic Federal Tax Payment System (EFTPS)
  • Credit Cards

It is recommend not to use a Bank Account to pay because if you fail to make payments the IRS can levy your bank account.

What is the Deadline to Appeal an Installment Agreement?

  • Normally you have 30 days (postmarked) from the date of your rejection for a new IA request. Regarding a termination notice (of a preexisting IA), you have 30 days to request an appeal, then on day 46 the IA is terminated leaving you until day 76 to request an appeal at all.

Will the IRS Levy My Property If My IA was Rejected?

  • The IRS can levy your property if you fail to file an appeal within 30 days of your 1st request. The IRS must then wait until your appeal is accepted or rejected to levy your bank, wages, or any other personal property.

Once Appeals Make a Decision Can I Appeal that?

  • Once the Appeals process is over after a CAP hearing, the decision is binding and you cannot request a judicial review of the Appeals’ decision.

Why Would the IRS Terminate My Existing IA?

  1. You failed to file subsequent returns
  2. Your Collection Information Statement was inaccurate (Form 433)
  3. Your total tax liability since you begun your IA has increased
  4. You missed a payment

Why Would the IRS Terminate My New IA Request?

  1. Collection Information was inaccurate or incomplete
  2. You previously defaulted on an IA
  3. You failed to file current tax returns
  4. Your necessary living expenses on Form 433 are unreasonable

What Installment Agreement is Best if Owe over $25k?

  • If you owe over $25k to the IRS, you will need to negotiate and request a verified IA which is basically the requirement of filing out accurately Form 433, a Collection Information Statement.