Information you will need to adjust your installment plan

On Behalf of | Jan 23, 2021 | IRS Tax Law

When you set up your installment plan with the IRS, you did so believing you could make the payments. A change in circumstances may make it difficult to meet your obligations, but you can request a change; you should do this as soon as you realize you are in danger of falling behind on your plan. 

Before the IRS will adjust the plan, you will have to prove that you cannot make the current minimum payments. Here is the information the IRS requires as proof. 

Accounts and credit cards

You must list all the accounts and lines of credit you have, whether you have any money or credit available or not. This includes business accounts. 

Property and other assets

If you own your home or other real estate, even if you are still paying on the mortgage, this information must be on the form. You should include the amount you pay on the insurance and property taxes, as well, and you need to include the equity. Other assets include: 

  • Vehicles, including boats and recreational vehicles 
  • Collections, antiques and artwork 
  • Business assets 
  • Intangible assets 
  • Life insurance policies 

You will need to provide descriptions, amounts owed, whether you are leasing or purchasing an item, etc. 

Income

The IRS wants to see all your sources of income. Besides any wages, commissions, bonuses and other work income, you should list money you earn from online sales, rental properties, gambling, agricultural subsidies, distributions from IRAs, rent subsidies and oil credits, as well as any other financial sources. 

Expenses

Even if your income looks great on paper, your expenses may well outweigh that amount. The IRS wants details about all your outflow, from your housing, utilities and transportation to your medical expenses. If you have other expenses that you have to maintain, include the reason for them and how much the minimum payments are. 

While there may be consequences, such as a lien on your property, the IRS will not insist you make a payment that would result in a severe hardship for you or your family.