Tax Related

How Do I Reduce My IRS Installment Payment if I Can’t Reach the IRS?

Written by Steve Rhode

Question:

Dear Steve,

I’ve been on a payment plan from the 2014-15-16 installment agreement – IRS keeps hanging up on me, and I cannot get thru to them to lower monthly payments.

Can you help lower payments?

Robyn

Answer:

Dear Robyn,

Ultimately the IRS is the one controlling your payment. Here is the specific advice they offer for people in your situation, “You have several options available if your ability to pay has changed and you are unable to make payments on your installment agreement or your offer in compromise agreement with the IRS. Call the IRS immediately at 1-800-829-1040. Options could include reducing the monthly payment to reflect your current financial condition. You may be asked to provide proof of changes in your financial situation so have that information available when you call.”

People have been complaining they can’t get through to the IRS. It is frustrating.

The IRS also says you can change your monthly payment amount using the Online Payment Agreement tool.

The IRS states, “What You Can Change Using the Online Payment Agreement Tool.

You can use the Online Payment Agreement tool to make the following changes:

  • Change your monthly payment amount
  • Change your monthly payment due date
  • Convert an existing agreement to a Direct Debit agreement
  • Reinstate after default

You can log into the Online Payment Agreement tool using the Apply/Revise button.

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How To Revise an Online Payment Plan

Log in to the Online Payment Agreement tool using the Apply/Revise button. On the first page, you can revise your current plan type, payment date, and amount. Then submit your changes.

If your new monthly payment amount does not meet the requirements, you will be prompted to revise the payment amount. If you are unable to make the minimum required payment amount, you will receive directions for completing a Form 433-F Collection Information Statement PDF and how to submit it.”

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If you wanted to talk to someone that is a superstar with problems like this, you might want to contact Jim Buttonow, CPA.

Jim is a friend of this site and has answered many reader questions and provided help.

I can’t recall anyone using the online tool, so I would be very interested in your feedback if you attempt to revise your payment online. Please post an update for me in the comments below.


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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