Can the IRS reject my installment agreement request?
Yes, the IRS can reject your installment agreement request, but this is relatively uncommon for straightforward cases. The IRS must grant a Guaranteed Installment Agreement for balances under $10,000 if you meet the criteria, so rejection there is rare. For other types, rejection may occur if: your proposed payment is too low to satisfy the debt within the required timeframe, you have unfiled tax returns (the IRS requires all returns to be filed first), you defaulted on a prior installment agreement, you failed to provide requested financial information, or the IRS determines you have assets that could be liquidated to pay the debt. If rejected, you can appeal the decision through the Collection Appeals Program (CAP) or request a Collection Due Process hearing (if within the CDP window). You can also resubmit with a higher monthly payment or additional financial documentation. Tips to avoid rejection: file all missing returns before applying, propose a realistic payment amount, be current on estimated tax payments, and provide complete financial documentation if required. Most rejections result from incomplete applications, not the IRS refusing to work with willing taxpayers.
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