If you have an IRS installment agreement in place but find that you can no longer keep up with your payments, it may be necessary to change or modify your agreement. However, before you take any action, it is important to understand the options available to you and the potential consequences of modifying your agreement.

Here are some steps to follow if you need to change or modify your IRS installment agreement:

Step 1: Review Your Installment Agreement Terms

The first step in changing or modifying your installment agreement is to review your current agreement to understand the terms and conditions. You should note the amount of your monthly payments, the due date, and the total amount you owe. This will help you determine if you need to modify your agreement, and if so, what changes you need to make.

Step 2: Determine Whether You Need to Modify or Change Your Agreement

If you are unable to make your monthly payments and cannot afford to pay the full amount owed, you may need to modify your installment agreement. This can be done by changing the amount of your monthly payments, extending the term, or changing the due date.

Alternatively, if you believe that the terms of your agreement are unreasonable or unfair, you may need to change your agreement. This can be done by filing a request for a change of terms with the IRS.

Step 3: Submit a Request for Modification or Change

Once you have determined the type of changes you need to make to your installment agreement, you can submit a request for modification or change. You can do this by submitting Form 9465 (Installment Agreement Request) or by writing a letter to the IRS explaining the changes you would like to make.

When submitting your request, be sure to include any additional documents or information that may support your case, such as proof of financial hardship.

Step 4: Wait for a Response from the IRS

After submitting your request, you should receive a response from the IRS within 30 days. If your request is approved, the IRS will send you a new agreement reflecting the changes you requested. If your request is denied, you will need to contact the IRS to discuss your options.

In conclusion, changing or modifying your IRS installment agreement can be a complex process. However, if you follow these steps and work with the IRS, you can ensure that you are able to make the necessary changes to your agreement and avoid any potential consequences.