If you`re struggling to pay your tax bill in full, the IRS offers installment agreements that allow taxpayers to pay off their taxes over time. These agreements provide a way for individuals to avoid the stress and penalties that come with owing large sums of money to the government.
But what happens if you`ve entered into an IRS installment agreement and find yourself unable to make the payments? Can you add another year to your agreement?
The answer is yes, you can add another year to your IRS installment agreement. In fact, the IRS offers several options for modifying your agreement if you`re having trouble keeping up with payments.
To request an extension of your installment agreement, you`ll need to submit Form 9465, Installment Agreement Request, and Form 433-F, Collection Information Statement. These forms will provide the IRS with information about your financial situation, including your income, expenses, and assets.
Once you`ve submitted your forms, the IRS will review your information and determine whether you`re eligible for a modification. If you are, the IRS may agree to extend your agreement for an additional year or modify your payment plan in other ways.
It`s important to note that while the IRS allows for modifications to installment agreements, they do not come without consequences. Any changes to your agreement may result in additional interest and penalties, as well as a potential increase in the total amount you owe.
Additionally, if you fail to make payments under your modified agreement, the IRS may take enforcement action to collect the full amount owed, including wage garnishment, bank levies, and seizure of assets.
If you`re considering modifying your IRS installment agreement, it`s important to consult with a tax professional who can help you understand the potential consequences and guide you through the process.
In conclusion, if you`re struggling to make payments under your IRS installment agreement, you may be able to add another year to your agreement. However, modifications to your agreement may come with additional interest and penalties, as well as potential enforcement action from the IRS. If you`re considering modifying your agreement, it`s important to seek professional guidance to ensure the best possible outcome.