Can I Add a New Balance to My Irs Installment Agreement

Are you a taxpayer struggling to make payments on your IRS installment agreement? If so, you may be wondering if you can add a new balance to your existing agreement. The short answer is yes, but there are a few important things to consider before doing so.

First, it`s important to understand that adding a new balance to your installment agreement will increase your monthly payment amount. This is because the total amount owed to the IRS has increased, so your payments will need to be adjusted to accommodate the new balance.

Additionally, adding a new balance to your installment agreement may trigger additional fees and interest charges. The IRS charges interest on unpaid balances, and this interest will continue to accrue until the balance is paid in full. You may also be subject to a setup fee or other administrative charges when adding a new balance to your installment agreement.

Before adding a new balance to your installment agreement, it`s important to assess your financial situation. Can you realistically afford to make the increased monthly payments? If not, you may want to consider other repayment options, such as an offer in compromise or a partial payment installment agreement.

If you do decide to add a new balance to your installment agreement, you can do so by contacting the IRS directly. You`ll need to provide documentation of your new balance, as well as proof of your ability to make the increased payments. The IRS will review your request and determine whether to approve or deny your request.

In summary, adding a new balance to your IRS installment agreement is possible, but it should be done carefully and with a full understanding of the financial implications. If you`re unsure whether this is the right option for you, consider consulting with a tax professional or financial advisor who can help you evaluate your options and make the best decision for your unique circumstances.