How to Add to Existing IRS Installment Agreement | Legal Guidance

How to Add to Existing IRS Installment Agreement

Are you currently on an IRS installment agreement and need to make changes to the existing terms? Adding to an existing IRS installment agreement can be a complicated process, but with the right information and guidance, it can be done effectively. In this blog post, we will provide you with practical steps and tips on how to add to your existing IRS installment agreement.

Understanding the IRS Installment Agreement

Firstly, it`s important to have a clear understanding of what an IRS installment agreement is and how it works. An IRS installment agreement is a payment plan that allows individuals and businesses to pay off their tax debt over time. This agreement is ideal for those who are unable to pay their tax bill in full and need a more manageable way to settle their debts with the IRS.

When you initially set up an IRS installment agreement, you agree to make monthly payments towards your tax debt until it is fully paid off. However, there may be times when your financial situation changes, and you need to modify the terms of your existing agreement. This could involve adding a new debt, adjusting the payment amount, or extending the payment period.

Steps to Add to Existing IRS Installment Agreement

Adding to an existing IRS installment agreement involves several steps that must be followed carefully. Here are the steps you should take to add to your existing agreement:

StepDescription
1Review your current agreement
2Determine the changes you need
3Prepare the necessary documentation
4Contact IRS
5Wait response

Case Study: Modifying an Existing IRS Installment Agreement

Let`s take a look at a real-life example of a taxpayer who successfully added to their existing IRS installment agreement:

John, a self-employed individual, had an existing IRS installment agreement to pay off his tax debt. However, due to a recent downturn in his business, he found himself unable to keep up with the monthly payments. He contacted the IRS to explain his situation and provide documentation of his financial hardship. After reviewing his case, the IRS agreed to lower his monthly payment amount until his financial situation improved. John was able to stay compliant with the IRS and avoid any further penalties or interest charges.

Adding to an existing IRS installment agreement requires careful consideration and proactive communication with the IRS. By following the steps outlined in this blog post and seeking professional assistance if needed, you can make the necessary changes to your agreement and avoid any potential issues with the IRS.


Top 10 Legal Questions About Adding to an Existing IRS Installment Agreement

QuestionAnswer
1. Can I add new tax debt to my existing IRS installment agreement?Of course! The IRS allows taxpayers to add new tax debt to an existing installment agreement. You just need to make sure to keep up with your current payments while adding the new debt.
2. What is the process for adding new tax debt to an existing IRS installment agreement?Adding new tax debt to your existing installment agreement is quite simple. You can do so by filling out Form 9465 and submitting it to the IRS along with your proposed payment amount.
3. Will adding new tax debt to my existing IRS installment agreement affect my current payment plan?Adding new tax debt shouldn`t affect your current payment plan as long as you continue to make timely payments. However, it`s always best to communicate with the IRS to ensure everything is in order.
4. Can I add new tax debt to my existing IRS installment agreement if I missed payments in the past?Even if you`ve missed payments in the past, you can still add new tax debt to your existing installment agreement. You may need to catch up on your missed payments, but it`s definitely possible.
5. Is there a limit to how much new tax debt I can add to my existing IRS installment agreement?There is no specific limit to how much new tax debt you can add to your existing installment agreement. However, it`s important to ensure that you can afford the new payment amount before adding significant debt.
6. Can I modify the terms of my existing IRS installment agreement when adding new tax debt?Modifying the terms of your existing installment agreement when adding new tax debt is possible. You may need to negotiate with the IRS to agree on a new payment amount and schedule.
7. What happens if I can`t afford to pay the additional tax debt I want to add to my existing IRS installment agreement?If you can`t afford to pay the additional tax debt, you may need to explore other options such as an offer in compromise or a temporary suspension of payments. It`s important to discuss your situation with the IRS to find a suitable solution.
8. Can I consolidate multiple IRS installment agreements into one when adding new tax debt?Consolidating multiple installment agreements into one is possible when adding new tax debt. This can make it easier to manage your payments and stay on top of your tax obligations.
9. Will adding new tax debt to my existing IRS installment agreement affect my credit score?Adding new tax debt to your existing installment agreement shouldn`t directly impact your credit score. However, it`s important to stay current on your payments to avoid any negative consequences.
10. What should I do if I encounter difficulties when trying to add new tax debt to my existing IRS installment agreement?If you encounter difficulties, don`t panic! Reach out to a tax professional or legal advisor for assistance. They can help navigate the process and ensure that you`re able to add the new tax debt to your existing agreement.

Amendment to Existing IRS Installment Agreement

This Amendment to Existing IRS Installment Agreement (“Amendment”) entered into by between parties as of Effective Date set forth below.

Effective Date:[Effective Date]
Original Installment Agreement Date:[Original Agreement Date]
Party A:[Party A Name]
Party B:[Party B Name]
WHEREAS:Party A and Party B desire to amend and modify the existing IRS Installment Agreement dated [Original Agreement Date] in accordance with the terms and conditions set forth herein.

Amendment

Now, therefore, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

  1. Amendment Installment Payment Terms: The installment payment terms set forth original IRS Installment Agreement dated [Original Agreement Date] shall amended reflect new payment terms as agreed upon by both parties.
  2. Amendment Payment Schedule: The payment schedule under original IRS Installment Agreement shall modified reflect revised payment terms schedule as set forth Exhibit A attached hereto incorporated herein by reference.
  3. Amendment Contact Information: The contact information for both Party A Party B shall updated reflect current accurate contact information for each party.

General Provisions

The parties agree to the terms and conditions set forth in this Amendment. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Amendment shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

This Amendment and any disputes arising hereunder shall be governed by the laws of the state of [State] without giving effect to any choice of law or conflict of law provisions.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date first above written.

Party A:[Party A Signature]
Date:[Date]
Party B:[Party B Signature]
Date:[Date]