If you`re struggling to pay off your tax debt, an IRS Installment Agreement can be a helpful solution. This agreement lets you pay off your taxes over time, instead of in one lump sum. However, what happens if you need to add more debt to your installment agreement?
The good news is that it is possible to add more debt to an existing IRS Installment Agreement. Here`s what you need to know:
1. You need to request the addition of new tax debt
To add more tax debt to your Installment Agreement, you need to contact the IRS and request the change. This can be done by filling out Form 9465 (Installment Agreement Request) and attaching a statement explaining why you need to add more debt.
2. Additional fees and interest will be charged
It`s important to remember that adding more tax debt to your Installment Agreement will result in additional fees and interest. The IRS charges a setup fee for each new installment agreement, and interest will continue to accrue on your balance until it`s paid off in full.
3. You may need to renegotiate your payment plan
If the additional debt significantly increases your monthly payment, you may need to renegotiate your payment plan with the IRS. This can be done by filling out Form 433-F (Collection Information Statement).
4. Don`t miss payments
As always, it`s crucial to make your monthly payments on time and in full. Missing payments can result in penalties and additional interest charges.
In summary, adding more tax debt to an IRS Installment Agreement is possible, but it`s important to understand the additional fees and interest that will be charged. If the additional debt increases your monthly payment significantly, you may need to renegotiate your payment plan with the IRS. And as always, it`s crucial to make your payments on time and in full to avoid penalties and additional interest charges.