I entered into an installment agreement 10 years ago with the IRS. Do I still have to keep paying what is owed?

Asked 11 months ago - Portland, ME

The IRS at the end of the 10 years lifted the lien on my property. I still have an outstanding balance that I am paying on. If I stop paying what happens to the owed taxes?

Attorney answers (3)

  1. Steven M Zelinger

    Pro

    Contributor Level 20

    7

    Lawyers agree

    Answered . The other answer gives you the info you need. Call and ask about the transcript. I have actually had them answer the question about the CSED as that is not private.

    This is not legal advice nor intended to create an attorney-client relationship. The information provided here is... more
  2. Gregory David Verdibello

    Contributor Level 10

    6

    Lawyers agree

    Answered . The IRS collection statute runs 10 years from the date your tax is "assessed." The collection statute can be tolled in certain situations (e.g., bankruptcy). The IRS might have written off the balance you owed if the collection statute (CSED) expired. You should request copies of your account transcripts from the IRS for the tax years that you owe(d). The IRS generally inputs the term "write-off" if the CSED has expired.

    If you stop paying one of two things could occur. If you don't owe the tax, then the IRS will do nothing. Of course they will continue to accept your payments even they no longer can take collection action against you. Second, the collection statute of limitations might not have expired. If you do still owe the tax, then defaulting will put you back into collection status and will expose you to IRS levies, wage garnishments, and seizures.

    Get copies of your account transcripts and look for the term "write off". You might even be able to get a hold of someone at the IRS who can advise on the CSED.

    Good luck.

    This material does not constitute tax, legal or accounting advice. It was not intended or written for use and... more
  3. Ronald J Cappuccio

    Pro

    Contributor Level 15

    4

    Lawyers agree

    Answered . The best choice is to retain a tax attorney. Certain appeals, request for an Offer In Compromise, bankruptcy and a consent can extend the statute of limitations. It would be well worth having a tax attorney represent you, look at the transcript and see exactly where you are.

    Good luck!

    Ron Cappuccio
    www.TaxEsq.com
    856 665-2121

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary... more

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