How Do I Cancel an IRS Payment Plan?
This article discusses cancelling your IRS payment plan. Three different options for cancellation are described: for Direct Debit Installment Agreements, for Payroll Deduction Installment Agreements, and by talking to the IRS and making the request directly. Instructions for lowering your IRS payments using the IRS' online tool are also provided.
If you have set up a payment plan with the IRS and are experiencing a period of economic hardship, you may need to cancel the payments. Read on to learn how.
Cancellation Considerations
Before you try to suspend your payments, remember that the interest you owe on your IRS debt will continue to build up on your unpaid balance. This could significantly increase your overall debt level in the long run.
Stopping Your IRS Payments
If you need to suspend payments on a Direct Debit Installment Agreement, or DDIA, where the payments are automatically made from your bank account, then you need to contact your bank and ask them to stop the payments. By law, banks must comply with your request to stop any recurring payment.
If you have a Payroll Deduction Installment Agreement, or PDIA, where payments are taken out of your paycheck, you will need to contact your employer and ask them to stop making the paycheck deductions. Unlike the situation with banks, they are not required to comply with such a request, but you should try talking to them. If the IRS has suspended tax obligations because of a national emergency, your employer may honor your request.
Contacting the IRS
If you are not able to cancel your payments by other means, you can also try calling the IRS. If you are suffering from financial hardship, one of the officials there might be able to cancel or temporarily suspend your payments. The IRS has phone, chat, email, and help desk options.
Lowering Your Payments
If you want to lower your payments without needing to actually cancel them, you can do so online. Just follow these instructions:
- Go to the IRS webpage.
- Log into your account.
- Click on the Pay link in the navigation bar.
- Click on "How do I review or revise an existing plan?" link under the Individual Payment Plan header.
- Click on the Apply/Revise button.
- Change the amount you are required to pay.
- Submit the change. If the change you requested does not meet the IRS' requirements, you will be prompted to try again.
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