IRS default

I hope someone can give me some advice. I was set up in a payment arrangement with the IRS and got layed off a month ago. I owe about $7,000.00 (yuck I know), and do expect when I file my 2009 taxes I will get a refund which will make the balance lower. On Friday, I got a registered card in the mailbox, which I know is letters on my default.

Do you think if I tell them my situation they will work with me?

Thanks

Usually they will work with you, but you will need to apply for an installment loan all over again.

Well Missy, you can try calling them and explaining your situation.

When you default on the payment plan with IRS, they can also go ahead in putting a lien against your property, asset and can also garnish your wage to get a full payment.However, you may call them up and explain your situation. You may request for the program to be reinstated but your failure to pay penalty would increase.

I'd say call them up immediately.

A friend just went thru this...they were very gave him a payment he could afford based on his unemployment.

The IRS won't reinstate an installment plan, they make you fill out an application and start all over again.

Thanks all for the great advice. Someone told me I might be able to get a taxpayer advocate. Does anyone know how this works? Thanks again