Tax Court Denies Installment Plan Request Over Noncompliance!

Taxpayers who owe more taxes than they can pay have options, which include payment plans, but compliance is key. If repayment will take more than 180 days, a taxpayer may seek an installment agreement with the IRS. Interest and penalties still apply. To qualify for an agreement, the taxpayer must be current with estimated tax payments and must substantiate their expenses and income. One taxpayer requested an installment plan with proposed monthly payments of $5,000, asserting that his expenses exceeded his income. The U.S. Tax Court found that he failed to prove his stated expenses and wasn’t current on his estimated payments. His request for an installment plan was denied. (TC Memo 2025-98)