As a responsible taxpayer, it’s always best to stay on top of your financial obligations, including any payment agreements you may have with the Internal Revenue Service (IRS). However, we understand that sometimes unforeseen circumstances may arise, and you may need to cancel your IRS payment agreement. If you find yourself in this situation, don’t panic. We’ve put together a step-by-step guide on how to cancel your IRS payment agreement.

Step 1: Determine the Type of Payment Agreement You Have

Before you start the cancellation process, you first need to determine the type of payment agreement you have with the IRS. There are two main types of payment agreements – Installment Agreements (IA) and Offer in Compromise (OIC).

If you have an IA, make sure to review the terms of your agreement to see if you’re able to cancel. If eligible, you can cancel your IA by notifying the IRS in writing either by mail or using the Online Payment Agreement (OPA) application. If you have an OIC, you must submit a written request to withdraw your offer.

Step 2: Gather Your Information

When canceling your IRS payment agreement, you’ll need to have all the necessary information at your fingertips. Be sure to have your social security number or tax identification number, your IRS notice or letter, and any paperwork related to your payment agreement.

Step 3: Contact the IRS

To cancel your IRS payment agreement, contact the IRS using the phone number provided on your notice or letter. Alternatively, you can use the OPA application to request cancellation of your IA. Make sure to have all the necessary information ready when you call or complete the online form.

Step 4: Understand the Consequences

Before canceling your IRS payment agreement, it’s essential to understand the consequences. If you cancel your agreement, the IRS can take enforcement action, which can include wage garnishment, bank levies, property seizure, and other collection efforts.

Step 5: Consider Alternative Payment Options

If you’re unable to continue making payments on your current payment agreement, consider alternative payment options. The IRS may be willing to modify your existing plan, or you can request a short-term extension to help you get back on track.

Final Thoughts

Canceling your IRS payment agreement may seem daunting, but it doesn’t have to be. By following the steps outlined above and carefully considering the consequences, you can make an informed decision that best suits your financial situation. As always, seeking the guidance of a tax professional can help ensure you make the right choice for your circumstances.