As tax season approaches, many people are scrambling to make sure they have all the necessary paperwork and information to file their taxes. For those who owe taxes and are unable to pay the entire amount in one lump sum, the IRS offers the option of a tax installment agreement. However, if you have already entered into an installment agreement but are struggling to keep up with the payments, you may need to consider amending the agreement.
What is an amended tax installment agreement?
An amended tax installment agreement is a change made to an already existing installment agreement. This change could be due to a variety of reasons, such as a change in financial circumstances or an error in the initial agreement. Essentially, an amended installment agreement allows you to modify your payment plan in order to make it more manageable and feasible for you.
Why might you need to amend your tax installment agreement?
There are several reasons why you might need to amend your tax installment agreement. Some of the most common reasons include:
1. Change in financial circumstances – If you experience a change in financial circumstances, such as a job loss or a decrease in income, you may find that you are no longer able to meet the payment obligations of your current installment agreement.
2. Error in the initial agreement – It`s possible that there was an error in the initial installment agreement, such as an incorrect payment amount or incorrect due date. In this case, you will need to amend the agreement to correct the error.
3. Unexpected expenses – If you are facing unexpected expenses, such as a medical emergency or car repair, you may need to amend your installment agreement in order to free up some cash.
How do you go about amending your tax installment agreement?
If you need to amend your tax installment agreement, there are several steps you will need to take. The first step is to contact the IRS and inform them of your desire to amend the agreement. You will need to provide them with your current installment agreement information, as well as the reason why you want to amend the agreement.
Once you have contacted the IRS, they will review your case and determine whether or not you are eligible for an amended installment agreement. If you are eligible, they will work with you to create a new payment plan that is more feasible for your current financial situation.
It`s important to note that there may be penalties for amending your installment agreement, and you will still need to pay any outstanding tax debt that you owe. However, amending your installment agreement can be a helpful tool for those who are struggling to keep up with their current payment plan.
If you are struggling to keep up with your tax payments, amending your tax installment agreement may be a good option for you. By working with the IRS to create a new payment plan that is more manageable, you can take control of your finances and avoid further penalties and fees. If you think you may need to amend your installment agreement, don`t hesitate to reach out to the IRS and start the process today.