Payment plan (missed payments)

[ILLMAS]

Does anybody know if an IRS payment plan is canceled after missing one payment or a few?

Thanks

[jklcpa]

1 hour ago, ILLMAS said:

Does anybody know if an IRS payment plan is canceled after missing one payment or a few?

Thanks

Under the IRS' "People First Initiative" payments were suspended from April 1st through July 15th for those with existing agreements, so it may not be as bad as you think.  Has your client received any sort of notice at all?

https://www.irs.gov/newsroom/have-an-installment-agreement-or-payment-plan-payments-should-resume-starting-july-15

https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program

Has the client set up an online user account?  He/she can check the balance, set up the direct debit, revise an existing agreement, etc....   Here's a link to another IRS page in Q&A format with a lot of links that may be helpful too:

https://www.irs.gov/payments/payment-plans-installment-agreements

[Max W]

Missing a payment will cause a default 30 days after the payment was due at which time a CP523 default notice will be issued.

The notice says that the installment arrangement will be terminated if the missing payment(s) are not made within 30 days.

I suggest calling the IRS number on the letter as they may be a reinstatement fee and then making these payments right away on irs.gov.  The mail can be too slow.  

If the original payment was only late, sending the payment usually causes the default to be cancelled.