As a taxpayer, keeping up with the payments on your tax debt can be tedious and stressful. But did you know that you could change the terms of your installment agreement? An installment agreement amendment is a modification to an existing payment plan, which allows you to adjust the terms to better suit your current financial situation.
Why would you need an installment agreement amendment? There are many reasons why taxpayers apply for a modification of their payment plan. One of the most common reasons is a change in income or expenses. For example, if you lose your job or experience a reduction in income, you might struggle to keep up with your payments. An amendment would allow you to lower your monthly payments to a more manageable amount.
In addition, life events such as a divorce, illness, or the birth of a child can lead to increased expenses and a need for more financial flexibility. If you find yourself in this situation, an installment agreement amendment might be the solution to your problems.
To apply for an installment agreement amendment, you will need to fill out Form 9465, Installment Agreement Request. You can use this form to request a change in the payment amount, due date, or even the length of time you have to pay. In some cases, you might be required to provide additional documentation to support your request.
It`s important to note that the IRS charges a fee for each installment agreement amendment, which can be up to $89 for each request. Therefore, before submitting your application, you need to make sure that the changes you are requesting are worth the additional cost.
If you are struggling to keep up with your payments, it`s essential to take action. Ignoring the problem will only make matters worse. The IRS can take aggressive collection actions against taxpayers who fail to make payments on their tax debt, such as garnishing wages, levying bank accounts, and even seizing property.
In conclusion, an installment agreement amendment can be a helpful tool for taxpayers struggling to keep up with their tax debt payments due to a change in income or expenses. To apply for an amendment, you will need to fill out Form 9465, Installment Agreement Request, and pay the required fee. If you are having financial difficulties, it`s crucial to seek professional advice and take action to avoid more drastic collection actions by the IRS.