Monday, December 12, 2011

Reinstating Installment Agreements

We have had to revisit installment agreements for various different reasons. A few reasons have been for lack of payment, accrual of additional taxes, failure to remit timely payments, and so forth. What is important to remember is the installment agreement usually can be reinstated rather quickly. The appropriate and following steps must be taken:

- Contact your Power of Attorney right away and fax any and all notices to his/her attention
- Have the Power of Attorney read the notices (if they have not received copies already) and dictate next steps
- Once the next steps are determined, make sure all notices are calendared and appeal rights are adhered to
- A financial statement form may need to be revisited, filled out and turned in, but many times a call will resolve the situation

Usually the IRS will reinstate the agreement, charge a user fee, and you will need to start making payments immediately. It is important to remember that once an installment agreement is reached, pay close attention to the terms of the agreement. The following must be maintained throughout the duration; staying current and compliant, filing current returns timely, paying current taxes timely, paying installment payments on time and in full by the due date, taking notice of any addition or increase to the agreement, taking notice of a 1 or 2 year financial review once the agreement is set up, paying any and all notices if additional tax, penalty, or interest amount is accrued and informing the IRS as such.

Remember, if you are a current client and your agreement defaults, please contact us immediately to assist you with the reinstatement work involved.

Feel free to contact us at 720-398-6088 or on our website at