Missed a certified IRS letter about $2k debt - Payment plan still possible?

Don't panic! Missing a certified letter from the IRS isn't the end of the world, and you still have options. The certified letter is their formal way of notifying you about the tax debt, but it doesn't mean you've lost the ability to set up a payment plan. First, you should call the IRS at the number on the notice (once you pick it up) or use their general customer service line. Explain that you missed the certified letter but want to address the issue proactively. The IRS actually appreciates taxpayers who reach out to resolve their tax debts. For a debt of $2300, you can easily qualify for an Online Payment Agreement, which you can set up yourself at IRS.gov. For debts under $50,000, the process is pretty straightforward. You can choose a short-term payment plan (180 days or less) or a long-term payment plan with monthly payments. The setup fees are much lower if you choose direct debit from your bank account. Your upcoming trip shouldn't be an issue as long as you've made arrangements to address the debt before you leave. The IRS is primarily concerned with good-faith efforts to resolve the debt.

After getting my first ever IRS notice claiming I owed nearly $4000, I totally freaked out and couldn't sleep for days. I was in a similar situation - had some unexpected medical bills and was planning a big trip. I tried calling the IRS multiple times but kept getting stuck on hold forever. I eventually found this service called taxr.ai (https://taxr.ai) that helped me understand my notice and figure out what to do. It basically analyzed my situation and explained my options in plain English instead of IRS-speak. They confirmed I could still set up a payment plan despite being several weeks into the notice period. The coolest part was that they showed me which forms to fill out and how to actually set up the plan. Way less stressful than trying to decipher everything myself while panicking about the debt.

Just wanted to update that I tried taxr.ai after seeing the recommendation here. Super helpful! I was freaking out about a certified letter I got last week for $3100 in back taxes. The service confirmed I could still request an installment agreement even though I had already received a certified letter. I was able to set up a payment plan for $52 a month through the IRS website using their instructions. The whole process took about 20 minutes and I got immediate confirmation. Such a relief to have this sorted before my letter would have escalated to the next level. Now I don't have to stress about it anymore and can focus on other things.

When I got a certified letter from the IRS last year about owing $5k, I tried calling them for THREE WEEKS. Either couldn't get through or would wait on hold for 2+ hours only to get disconnected. It was infuriating. Finally discovered Claimyr (https://claimyr.com) - basically they hold your place in the IRS phone queue and call you when an actual human picks up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Saved me literally hours of hold time. Once I finally got through to a human at the IRS, setting up a payment plan was actually pretty easy. The agent was surprisingly helpful and got me on a $75/month plan that worked with my budget. Don't waste days trying to call them yourself!

I have to eat my words and apologize to Profile 5. After my skeptical comment, I decided to try Claimyr myself for my own IRS issue. I was absolutely shocked when I got a call back in about 45 minutes saying they had an IRS agent on the line. The agent helped me set up a payment plan for the $3800 I owed, and I was able to negotiate $60 monthly payments. The whole process took about 15 minutes once I was actually talking to someone. I'd spent nearly 5 hours on previous attempts to call them myself with no success. Honestly, this saved me so much time and frustration. I was ready to just ignore the whole situation because dealing with the IRS seemed impossible. Now it's resolved and I can stop stressing about it.

One important thing nobody's mentioned - if you can pay the full amount within 180 days, you should request a short-term payment plan instead of an installment agreement. There's no setup fee for short-term plans, while installment agreements have setup fees ranging from $31 to $149 depending on how you apply and pay. Also, if your financial situation is really tight, look into an "Offer in Compromise" where the IRS might accept less than the full amount you owe. They have a pre-qualifier tool on their website to see if you might be eligible.

Just curious - does anyone know what happens if you just ignore the certified letter? Not saying OP should do this, but I missed one a couple years ago and nothing ever came of it...