WHAT HAPPENS WHEN I REQUEST A PAYMENT PLAN?

WHAT HAPPENS WHEN I REQUEST A PAYMENT PLAN?
When you request a payment plan (installment agreement), with certain exceptions, the
IRS is generally prohibited from levying and the IRS’s time to collect is suspended or
prolonged while an Installment Agreement (IA) is pending.

An IA request is often pending until it can be reviewed, and an IA is established, or the
request is withdrawn or rejected.
If the requested IA is rejected, the running of the collection period is suspended for 30
days.

Similarly, if you default on your IA payments and the IRS proposes to terminate the IA,
the running of the collection period is suspended for 30 days.
Last, if you exercise your right to appeal either an IA rejection or termination, the
running of collection period is suspended by the time the appeal is pending to the date the
appealed decision becomes final.

Refer to  Tax Topic No. 160 – Statute Expiration Date and Tax Topic No. 202 – Tax
Payment Options .
(IRS Web Site Updated 08/25/22) (TTT 10/04/22)