Can I Add to an Existing IRS Payment Plan?

It is possible to add a new tax liability to an existing Internal Revenue Service (IRS) installment agreement. This action involves revising your current payment plan rather than creating an entirely new one. The IRS has established procedures to accommodate taxpayers who find themselves with an additional tax balance while already making payments on a prior debt.

Eligibility for Modifying Your Plan

To add a new tax balance to your existing installment agreement, you must first meet certain conditions set by the IRS. A primary requirement is that you are current with all your tax return filings, including the return that generated the new debt. The IRS cannot modify an agreement to include a tax liability that has not yet been formally reported on a filed return.

Another condition is that you must be up to date with the payments on your existing installment agreement. Falling behind on payments can put your plan into default. Incurring a new tax debt is also technically a default of the original agreement’s terms. However, the IRS is often willing to revise the agreement to include the new balance, provided you have maintained your payment history.

Information Needed to Revise Your Agreement

Before you request to add a new tax balance to your plan, you must gather specific information. You will need the official IRS notice that details your new tax balance, which is often a CP14 notice. You must also have the specifics of the new debt, including the tax year and the form number, such as a 2023 Form 1040.

Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is also necessary. It is helpful to have the details of your current installment agreement readily available, including your current monthly payment amount and remaining balance.

If adding the new liability pushes your total combined balance over $50,000, you may need to provide detailed financial information. The IRS often requires the submission of a Collection Information Statement, Form 433-F. Completing this form requires you to document your monthly income, necessary living expenses like housing and transportation, and disclose the value of your assets.

How to Add a New Tax Balance

Once you have confirmed your eligibility and gathered the necessary information, you can request the modification. One direct method is using the IRS’s Online Payment Agreement (OPA) tool. After logging into your IRS online account, navigate to the section for managing your payment plan and select the option to revise your agreement. The system may allow you to add the new balance and will recalculate your monthly payment.

You can also contact the IRS directly by phone. For individual tax matters, call the number listed on your most recent IRS notice. When you speak with an agent, state that you have an existing installment agreement and wish to add a new tax balance to it. The agent will verify your identity and guide you through the process.

A third option is to submit your request by mail. In the letter, you must state your request to add the new tax liability to your current plan, including your name, SSN or ITIN, the tax year of the new debt, and a reference to your existing agreement. After your request is processed, the IRS will send a formal letter confirming the changes to your installment agreement, the new total balance, and the revised monthly payment amount.