When it comes to dealing with the Internal Revenue Service (IRS), it`s always best to pay your taxes on time and in full. However, sometimes financial circumstances make it difficult to do so. If you find yourself in this situation, you may wonder if the IRS will add to your installment agreement.
An installment agreement is a payment plan that allows you to pay your taxes over time instead of all at once. This can be a helpful option if you can`t afford to pay your tax bill in full when it is due. When you request an installment agreement, the IRS will review your financial information to determine how much you can afford to pay each month.
Once you have been approved for an installment agreement, it`s important to make your payments on time. If you miss a payment, the IRS may add penalties and interest to your balance. This can make it even more difficult to pay off your tax debt.
If you are struggling to make your installment agreement payments, it`s important to contact the IRS as soon as possible. The agency may be willing to work with you to adjust your payment plan based on your current financial situation.
In some cases, the IRS may add to your installment agreement if you file a return with additional tax liability. This can happen if you forgot to include income on your original return, for example. If this happens, the IRS will send you a notice outlining the additional amount you owe and how it will affect your installment agreement.
If you can`t afford to pay the additional tax liability, you should contact the IRS to discuss your options. The agency may be willing to renegotiate your installment agreement or offer other payment options.
In conclusion, an installment agreement can be a helpful option if you can`t afford to pay your tax bill in full. However, it`s important to make your payments on time and to contact the IRS if you are struggling to make your payments. The IRS may be willing to work with you to adjust your payment plan based on your current financial situation. If you file a return with additional tax liability, the IRS may add to your installment agreement, but it`s important to discuss your options with the agency if you can`t afford to pay the additional liability.
