The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-2)

The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-2)

What if I have requested an installment agreement?

When you request an installment agreement (IA) through the  Online Payment
Arrangement (OPA) page , you will receive an immediate response notifying you whether
your request is approved, or you don’t qualify through OPA.

If you don’t qualify for an IA through OPA, you may also request an IA by
submitting  Form 9465 , Installment Agreement Request, with the IRS. When you request
an IA using the form, generally, you’ll receive a response from the IRS within 30 days
notifying you of whether the IA request was approved or rejected. An assigned IRS
employee may also contact you and request financial records to verify the amount you’ve
requested to pay.

If the IRS approves your IA, a setup fee may apply depending on your income. Refer
to  Tax Topic No. 202 – Tax Payment Options . 

If you request an IA, the time the request is pending pushes out, or suspends the running
of, the initial ten-year collection period. 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reviewed, and an IA is established, or the request is withdrawn or rejected.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 Dates .

(IRS Web Site Updated 03/25/22) (TTT 08/09/22)