Home |IRS Refund | If I fail to set up a payment plan for my outstanding debt with IRS, how long does it typically take before my wages are seized or money is withdrawn from my account, considering my current financial situation and my intention to establish a long-term plan?

If I fail to set up a payment plan for my outstanding debt with IRS, how long does it typically take before my wages are seized or money is withdrawn from my account, considering my current financial situation and my intention to establish a long-term plan?

Robert James, 20+ years of experience in IRS matters
Answered on September 16,2023

If you filed your tax return then IRS usually sends three balance due notices before they move to enforcement. At that point you would get a Notice of Intent to Levy by certified mail - you've probably got a few months before that happens. The Notice of Intent to Levy gives you 30 days to set up a payment plan.

If you can set up a long-term payment plan online and pay around $55 a month, that will prevent any enforcement. You could then pay more when you are able using IRS Direct Pay.

Apply Online for a Payment Plan

Direct Pay With Bank Account

IRS doesn't usually try to levy for smaller balances - they'll just let it sit and collect from future refunds. But I think you owe enough that they might try to levy your bank account.

You may qualify for First time penalty abatement, which can get your Failure to Pay penalties waived. You still have to pay interest, which is currently 7% per year. Best time to request First time abatement is after you have paid the original tax balance due; you can call and ask for it over the phone.

Penalty Relief due to First Time Abate or Other Administrative Waiver

If you are still doing Uber or other gig work it's important that you prioritize making quarterly estimated tax payments. Otherwise you can easily keep racking up debt, and can be subject to underpayment penalties.

Self-Employment Wiki

If I fail to set up a payment plan for my outstanding debt with IRS, how long does it typically take before my wages are seized or money is withdrawn from my account, considering my current financial situation and my intention to establish a long-term plan?

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