What Happens If I Miss an Installment Payment? |
|
Throughout the term of an installment agreement, your payments must be made on time. If your payments cannot be made due to a change in your financial condition, you should contact the IRS immediately. Failure to make timely payments could default your agreement. A default of your installment agreement may cause the filing of a Notice of Federal Tax Lien and/or an IRS levy action. Either can have a negative effect on your credit standing and cause financial difficulties.
Enforced Collection Actions
Generally, IRS enforced collection actions (i.e., levy against personal or real property) are not made while an installment agreement request is being considered, or:
- While an agreement is in effect,
- For 30 days after a request for an agreement has been rejected, and
- For any period while a timely appeal of the rejection or termination is being evaluated by the IRS.
|
|
|
Page Last Reviewed or Updated: August 12, 2008