One Day Late on Irs Installment Agreement

As a responsible taxpayer, it is important to keep up with your tax payments. Sometimes, however, unforeseen circumstances or unexpected expenses may make it difficult to meet your tax obligations on time. If you have an IRS installment agreement in place, you may wonder what happens if you are one day late on your payment.

Firstly, it is vital to understand that the IRS takes non-payment very seriously. Your installment agreement is a legal agreement, and the IRS expects you to meet your payment obligations on time, as agreed upon. Failing to make your payments on time can result in several consequences, including interest and penalties.

If you miss a payment due date, the IRS will send you a reminder notice. This notice will include the missed payment and any additional penalties or interest. The IRS will also continue to charge interest on any unpaid balances until they are fully paid.

It is essential to contact the IRS immediately if you are unable to make a payment as scheduled. The IRS offers various options for taxpayers who are struggling to make their payments, such as modifying the installment agreement, suspending payments temporarily, or offering a temporary delay of collections.

You may also consider making a partial payment if you are unable to make the full payment on time. However, it is essential to keep in mind that partial payments may not be accepted by the IRS, and interest and penalties may continue to accrue until the balance is fully paid.

In conclusion, missing a payment on an IRS installment agreement can have serious repercussions. However, there are options available if you are unable to make your payment on time, such as contacting the IRS and modifying your agreement or making a partial payment. As a responsible taxpayer, it is important to stay informed and proactive about your tax payments to avoid any additional problems in the future.