Will seizure occur even if i am paying regularly, being refused an installment agreement?

[Ron_Paxton]

I have been told by research and a few in person accounts that the irs will work with you so long as you are paying regularly even if you dont pay it all within a certain timeframe. what about if i was denied an installment agreement? even if i am paying regularly, wouldnt that halt seizures/ collections?

[Mike9241]

if you are able to pay in full immediately and still be able to provide (reasonable amounts)  for your food, clothing and shelter, it is highly unlikely the IRS will grant an installment agreement (IA) nor would an offer in compromise be accepted.  

info on IRS payment plans 

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

failure to pay penalty and there is interest also

https://www.irs.gov/payments/failure-to-pay-penalty  

IRS discussion of its collection process (when bills are ignored) 

https://www.irs.gov/pub/irs-pdf/p594.pdf 

info on what can happen if you default on an IA

https://www.mdtaxattorney.com/resources/what-happens-if-i-default-on-my-irs-installment-agreement/ 

I would advise seeing a specialist ASAP 

the short version is that if the IRS does not grant an IA, you'll get a bill (how soon is unknown)  and if that isn't paid in the timeframe specified the IRS will start the collection process. 

[Ron_Paxton]

thankyou Mike, anyone else?

[Critter-3]

Mike's answer is complete.   Depending on the amount you owe, if you will not be able to pay it off within a 5 year period (including the interest),  the IRS can put you into collections.  Seek local advice from a tax attorney for a complete answer for your situation. 

[Ron_Paxton]

yes i will. and yes i could pay it off in probably 2 years or less. I am confused by Mikes answer- he says not likely i would get an installment agreement approved in the first place if i was able to pay most of it up front but decided not to and opted for the installment so as to protect my means of survival.

As per the IR website's online installment agreement application - they are approved without any further investigation into whether you can pay a lump sum up front or not - so long as it is under 50,000.00

I am worried i wouldnt get an installment agreement approved for 2021 since I am late on 2020 taxes and have not filed those either, due to health problems, though im likely due a refund on those so

[SweetieJean]

Even if you are approved for an installment agreement, the IRS can still seize a refund from a different year to pay down the debt.

Refund Inquiries | Internal Revenue Service (irs.gov)

[Ron_Paxton]

Okay, that helps. So there is still the possibility of seizure. What is the likely hood they'd go after my property or investment assets even if i'd got an agreement and if i'd been paying regularly, probably double payments?

[Mike9241 · Accepted solution]

the IRS is not supposed to grant an installment agreement unless and until you are in full compliance, meaning that all tax returns have been filed. see this link

https://forst.tax/installment-agreement/ 

you may be right about not being required to make a large down payment on an IA. it's been years since I helped a client with unpaid taxes and at that time the IRS wanted the largest down payment the taxpayer could afford (taking into account what he needed to provide for himself) this included financial disclosure.  

here's some more

https://www.thebalance.com/installment-agreements-3193406 

[fanfare]

"wouldnt that halt seizures/ collections?"

You can't just invent your own payment plan/installment schedule and expect the IRS to stand down.