IRS Installment Agreement Delay: Understanding the Causes and What You Can Do
If you owe taxes to the Internal Revenue Service (IRS), you may be able to set up a payment plan known as an installment agreement. This allows you to pay off your tax debt over time, rather than all at once. However, you may encounter some delays in the process – here`s what you need to know.
Causes of Delay
There are several reasons why your installment agreement may be delayed. Some of the most common include:
1. Incorrect or incomplete information on your application: The IRS requires certain information to set up an installment agreement. If you don`t provide all of the necessary information, or if it`s incorrect, your application may be delayed.
2. Missed payments on previous installment agreements: If you`ve had an installment agreement in the past and missed payments, the IRS may be hesitant to set up another one until you`ve caught up on your payments.
3. Large tax debt: If you owe a significant amount of money to the IRS, your application may be delayed as the agency reviews your financial situation to determine your ability to pay.
4. Other financial obligations: If you have other outstanding debts or obligations, the IRS may need to review those as well before setting up an installment agreement.
What to Do
If your installment agreement is delayed, there are several steps you can take to try to speed up the process:
1. Check your application: Make sure you`ve provided all of the necessary information, and that it`s accurate. If anything is missing or incorrect, the IRS may need to contact you to get the correct information, which can cause delays.
2. Contact the IRS: If your application has been pending for more than 30 days, you can contact the IRS to check on the status. Be prepared to provide your Social Security number, filing status, and the amount of tax you owe.
3. Consider other payment options: If your installment agreement is delayed for an extended period of time, you may want to consider other payment options, such as a credit card or personal loan. Be aware that these options may carry higher interest rates than an installment agreement with the IRS.
4. Consult with a tax professional: If you`re having trouble navigating the installment agreement process, a tax professional may be able to help you. They can review your financial situation and help you understand your options for paying off your tax debt.
If you`re considering setting up an installment agreement with the IRS, it`s important to understand that the process may not always run smoothly. However, by providing accurate information, keeping in touch with the IRS, and exploring other payment options if necessary, you can help move the process along and get back on track with your tax payments.