Sometimes, you can’t keep up with your IRS installment agreement. Life happens. You might need to stop the agreement. This is where a termination letter comes in. It’s a formal way to tell the IRS you can no longer pay.
Writing this letter can feel daunting. Don’t worry. We have you covered. We’ll provide sample letters. These examples will guide you. You can adapt them to your situation.
These samples cover different scenarios. You will find what you need. We’ll help you write a clear, effective letter. Get ready to take control.
Sample Letter To Irs About Terminate Installment Agreement
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address]
[IRS City, State, Zip Code]
**Subject: Termination of Installment Agreement – [Your Name] – [Your SSN or EIN]**
Dear Sir/Madam,
This letter is to formally request the termination of the Installment Agreement currently in place for my outstanding tax liability. My Social Security Number (SSN) or Employer Identification Number (EIN) is [Your SSN or EIN].
The Installment Agreement was established on or around [Date of Agreement].
I am requesting termination because [Clearly state your reason for termination. Examples: you have paid off the balance, you can now pay the remaining balance in full, your financial situation has significantly changed].
[If applicable: I have enclosed a check/money order for [Amount] to cover the remaining balance.]
I request written confirmation that the Installment Agreement has been successfully terminated.
Thank you for your time and attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
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How to Write Letter To IRS About Terminate Installment Agreement
Subject Line: Concise and Cogent
- Employ a subject line that is both succinct and easily decipherable.
- Example: “Termination of Installment Agreement – Account Number [Your Account Number]”
- Including your account number expedites the processing of your request immeasurably.
Salutation: Professional Courtesies
- Commence with a formal salutation.
- Acceptable options include: “Dear Internal Revenue Service” or “To Whom It May Concern”.
- Avoid overly familiar or colloquial greetings.
Introduction: State Your Intent
- Clearly articulate your intention to terminate the existing installment agreement.
- Specify the account number and tax year(s) to which the agreement pertains.
- Example: “I am writing to formally request the termination of the installment agreement associated with account number [Your Account Number] for the tax year [Year].”
Body Paragraph 1: Reason for Termination
- Provide a succinct explanation for the termination request.
- If you’ve satisfied the tax liability, explicitly state this.
- If circumstances have changed, elucidate these alterations. For example, “I have fully remitted the outstanding tax liability per the original agreement.” Or, “Due to unforeseen pecuniary constraints, I am no longer able to adhere to the terms of the installment agreement.”
Body Paragraph 2: Supporting Documentation (If Applicable)
- If germane, mention any supporting documentation you are providing.
- This might include proof of payment or documentation substantiating a change in financial circumstances.
- Example: “Attached you will find copies of payment confirmations demonstrating full remittance of the outstanding balance.”
Closing: Polite and Proactive
- Conclude with a polite closing statement.
- Express gratitude for their attention and request confirmation of the termination.
- Example: “Thank you for your time and consideration. I would appreciate written confirmation of the termination of the installment agreement. “
Signature and Contact Information: Immutable Data
- Sign your name legibly.
- Print your name, address, and phone number below your signature.
- Ensure the contact information is current and accurate to facilitate seamless communication.
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Frequently Asked Questions: Terminating an IRS Installment Agreement
This section addresses common inquiries regarding the termination of an IRS installment agreement. Understanding the implications and process is crucial before taking action.
What are the common reasons for terminating an installment agreement?
Common reasons include the ability to pay the outstanding tax liability in full, securing alternative financing, or experiencing a significant change in financial circumstances that makes the agreement unsustainable.
What information should I include in my termination request letter?
Your letter should include your name, address, Social Security number (or Employer Identification Number), the tax year(s) in question, the reason for termination, and a clear statement requesting the termination of the installment agreement.
What are the potential consequences of terminating my installment agreement?
The IRS may reinstate collection actions, including levies and liens, to recover the outstanding tax liability. Penalties and interest will continue to accrue until the balance is paid in full.
How long does it take for the IRS to process a termination request?
Processing times can vary, but it generally takes the IRS several weeks to review and process a termination request. You should continue making payments until you receive official confirmation from the IRS.
Where should I send my termination request letter?
Send your letter to the IRS address where you normally send your installment agreement payments. If you are unsure of the address, contact the IRS directly for confirmation.