Quick answer

If you lose a job or your income drops, contact the IRS immediately to request a modification. You can often lower monthly payments or place the account into temporarily non‑collectible status while you recover. Keep in mind penalties and interest continue to accrue unless the IRS approves a different remedy.

Step‑by‑step: what to do first

  1. Review the plan and don’t stop communicating. Keep existing payments if you can; stopping payments without approval risks default, liens, or levies.
  2. Gather documentation (see checklist below).
  3. Try the IRS Online Payment Agreement tool first — it lets many taxpayers change payment amounts or reapply online (see IRS: Online Payment Agreement).
  4. If the online tool can’t help, call the IRS number on your notice or submit written documentation. For complex situations, you may need to submit Form 433‑F (Collection Information Statement) or Form 9465 (Installment Agreement Request) for a formal financial review.

Documentation checklist

  • Recent pay stubs or termination letter.
  • Unemployment benefit statements or notice of severance.
  • Recent bank statements and a one‑month budget for major expenses (rent/mortgage, utilities, medical).
  • Profit & loss statement if self‑employed.
  • Any offer letters, severance, or COBRA notices that affect future income.

How to request a modification

  • Online: Use the IRS Online Payment Agreement portal for simple changes (https://www.irs.gov/payments/online-payment-agreement-application).
  • Phone: Call the IRS number shown on your tax notice or 800‑829‑1040 for individual account inquiries.
  • Mail: Send a completed Form 433‑F or Form 9465 with supporting docs when requested or instructed (forms: https://www.irs.gov/forms-pubs).
    In my practice I’ve found the online route is fastest for straightforward reductions; cases needing a partial‑payment analysis usually require Form 433‑F and a financial review.

Options the IRS may offer

  • Reduced monthly payments or a longer term (recalculation).
  • Partial‑payment installment agreement (IRS will evaluate ability to pay using Form 433‑F). See when a partial‑pay plan makes sense.
  • Temporarily Currently Not Collectible (CNC) status if you have no ability to pay.
  • Offer in Compromise (OIC) if your liabilities exceed your reasonable ability to pay — this is a separate application and has stricter documentation rules.

What to expect and timing

  • Simple online changes can be processed quickly; financial reviews (Form 433‑F) may take several weeks.
  • Interest and late‑payment penalties generally continue until the tax is paid in full or resolved.
  • If approved, get written confirmation and update automatic payment instructions.

Common mistakes to avoid

  • Waiting until you miss a payment: contact the IRS before you default.
  • Relying on verbal promises — always get written confirmation.
  • Failing to provide full documentation, which delays decisions.

When to consider professional help

If your case involves business income swings, self‑employment, or a potential Offer in Compromise, a tax professional or enrolled agent can prepare the financial statement and represent you to the IRS. In my experience, accurate expense reporting on Form 433‑F materially improves approval odds for partial‑payment plans.

Related resources (FinHelp)

Authoritative sources

Professional disclaimer

This article is educational and not personalized tax or legal advice. Check current rules and fees on the IRS website or consult a qualified tax professional for advice tailored to your situation.