Here’s how you can suspend IRS Installment Agreement payments (2024)

FAQs

Here’s how you can suspend IRS Installment Agreement payments? ›

Direct Debit Installment Agreements (DDIAs) (where payments are automatically taken from a designated bank account): Contact your bank directly, share the IRS People First Initiative information, and ask them to temporarily stop deductions.

To request a temporary delay of the collection process or to discuss your other payment options, contact the IRS at 800-829-1040 or call the phone number on your bill or notice.

The IRS may propose termination in the event that the taxpayer fails to make an installment payment when it comes due; fails to pay another tax liability; fails to provide an updated financial statement, provides inaccurate information and fails to pay a modified payment based upon submitted updated information.

You may modify your payment amount or due date by going to IRS.gov/OPA. You may also call 800-829-1040 to modify or terminate your agreement. Generally, the fee is $89 to modify your installment agreement ($43 if you are a low-income taxpayer).

Contact your bank: To avoid any surprises in the event that your automatic payment isn't canceled, you should also contact your bank to revoke authorization for recurring payments. Different banks have different policies, so you'll have to check if you also need to sign any document or visit the bank in person.

Temporarily Delaying Collection — You can contact the IRS to request a temporary delay of the collection process. If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer's financial condition improves. Penalties and interest continue to accrue until the full amount is paid.

Call IRS e-file Payment Services 24/7 at 888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling. Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date.

If you're in a streamlined installment agreement, meaning you owe less than $50,000 and can pay within 72 months, you can miss 1 payment a year without default. For most other payment plans, 1 missed payment equals a default.

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship.

You must stay current with all filing and payment requirements, including projected penalties and interest on the tax debt, and fully pay the balance due in six years (72 months) and within the collection statute — the time the IRS has to collect the amount you owe.

How do I contact the IRS about an installment agreement? ›

If you are unable to revise an existing installment agreement online, call us at 800-829-1040 (individual) or 800-829-4933 (business).

Contact the IRS right away to see if you can reinstate your agreement. You may have to pay a fee to reinstate it or you may have to pay any new tax liability in full. Read your notice carefully — it explains what to do now that you have defaulted on your installment agreement.

What is an IRS Notice CP523? The CP523 Notice informs taxpayers of the IRS' intent to terminate the installment agreement and seize assets. This occurs when the taxpayer has defaulted on the payment agreement.

Contact your bank directly, share the IRS People First Initiative information, and ask them to temporarily stop deductions. Banks are required to comply with customer requests to stop recurring payments within a specified timeframe.

Don't Miss Payments

If you miss payments, your creditor can file a Motion to Set Aside the Order for Installment Payments. If that motion is granted, your creditor can garnish your wages. If this happens, you will get notice that the Motion to Set Aside Order for Installment Payments was filed.

You can contact your bank and place a stop payment order on the recurring transaction. Generally, a stop payment order is only good for six months. To stop payment, you will need to notify your bank at least three business days before the next payment is scheduled to be made. Notice may be made orally or in writing.

You can make estimated tax payments online at IRS.gov

14. With Direct Pay, you can view details on your payment and you can change or cancel your payment using the Look Up a Payment feature up to two business days before the payment date. All online tax payment options are fast and easy to use.

This plan gives them an extra 180 days to pay the balance in full. Long-term payment plan (also called an installment agreement) – For taxpayers who have a total balance less than $50,000 in combined tax, penalties and interest. They can make monthly payments for up to 72 months.

Contact the IRS right away to see if you can reinstate your agreement. You may have to pay a fee to reinstate it or you may have to pay any new tax liability in full. Read your notice carefully — it explains what to do now that you have defaulted on your installment agreement.