IRS installment plan


Last comment and I am out of this portion of the discussion . . .

That’s just silly. Late is still paid. I prepare between 150 and 250 tax returns every year for the last 10 years. I spend hours on the phone with the IRS every year. I don’t give advice like this lightly. If you have entered into a payment plan and are up to date with your payments you are paying your taxes.

Not everybody who enters a payment plan has done anything at all wrong. You seem to think that payment plans are for those who tried to avoid paying taxes and got caught. That is FAR from accurate. I could give you a dozen examples of other situations but not here.

Over and out . . .


Seems the government standard calls it a tax delinquency and similar to unpaid credit card debt. For me, I will advise based on overall credit health. If they are at least fair, and are in active repayment plans, no other factors…I will submit. But clearly the guidelines views payment plans negatively.


Just to be clear to everyone…i submitted my SF86 and they said having a payment plan is not what they are looking for. They are looking for the people who don’t pay their taxes.




no that’s the point in what I pasted - payment plans are not viewed negatively anymore


On the contrary…reading the whole paragraph clearly states a payment plan is a good thing in that it EXCUSES a failure to pay taxes, and meets the obligations (I understand where folks got a bill and started paying; separate train of thought) But read the last sentence closely…

In this respect, tax delinquency may be treated like any other financial problems, such as an unpaid credit-card bill.”
It is treated like any other financial problem…their words. OP made clear the difference is for one who refuses to pay taxes or knowingly isn’t paying vice simply not having enough withholding and making payments.


That’s what I have been saying; payment plan is good.


You are clearly not reading the whole paragraph. Yes a payment plan is good, even more so if you filed, found out you owed 4K and started payments, all on time. But if you did not file and had to establish a payment plan…different animal and their words are cleared “in this respect…tax delinquency MAY BE TREATED LIKE ANY OTHER FINANCIAL PROBLEMS SUCH AS UNPAID CREDIT CARD DEBT.”

That means it can be seen as a negative.


I don’t agree. It clearly says that regardless as long as you setup a payment plan, then that is looked at positively. If at the time of adjudication you are behind then it’s a negative aka no payment plan. It doesn’t say how long only that you are absolutely behind. Payment plan at any time to resolve delinquency is good. No payment or payment plan is bad.


It is still treated like any other financial problem. Their words. in the quote. Yes being in a repayment plan is a positive. But in this respect it is treated like any other financial problem.

And I am done on the topic.


Yes if you are still delinquent then it is a problem. If it is delinquent then you go on payment plan to fix it then you are good. It’s really not that difficult


If you are current on your payment plan, the IRS does not consider you delinquent.


I understand the IRS portion. I’m speaking to the literal words above (backed by my experiences these past 8 years on this compound) …“treated as any other financial problem.” Yes showing payments faithfully made is a mitigation, but circumstances leading to it are scrutinized.Even a bill where payments are caught up can and are regularly called into question by my client’s clearance office. Admittedly, mine has a larger roll in determining who and what meets their standard. But I can tell you making catch up payments (different from simply establishing a payment plan due to not withholding enough. This normally involves call back interviews and reviews of documentation. Even with a fully recovered credit score of 800. For my client, they clearly use the literal words of the adjudicative standards. This is above and beyond what the BI may reveal.