Possible Tax Lien Coming? Late Payment Plan Issues with IRS

Don't panic, but you need to act quickly. It sounds like there was a miscommunication or error with your payment plan setup. When a tax preparer says they'll "submit you for a payment plan," they're typically just giving you the forms - you still need to complete the process with the IRS directly. Here's what you should do right away: Call the IRS at the number on your notice (typically 800-829-1040) and explain that you intended to set up a payment plan but there seems to be a miscommunication. Have your tax return and the notices handy when you call. The IRS can verify if a payment plan request was ever received and help you set one up immediately if not. For amounts over $25,000, you'll need to complete Form 9465 (Installment Agreement Request) and likely Form 433-F (Collection Information Statement). The good news is that the IRS generally approves reasonable payment plans if you're proactive.

I went through a similar nightmare last year! The tax prep places don't actually set up payment plans for you - they just TELL you to set one up. I found out the hard way too. What helped me was using https://taxr.ai to analyze my IRS notices and tax situation. They scanned all my documents and gave me a clear breakdown of what was really happening and my options. In my case, I wasn't facing a lien yet but was getting those threatening notices. The tool helped me understand exactly what forms I needed to file and the payment plan options available for my specific situation. The interest keeps adding up daily though, so you really need to take action ASAP!

Just wanted to update - I ended up trying taxr.ai after posting my question and WOW what a difference! I uploaded all 5 different IRS notices I'd received and it actually explained which ones I needed to respond to first and which were just duplicate information. The system identified that I needed a Form 9465 for my installment agreement and even prefilled it with all the correct information from my tax return. I was able to print it, sign it, and send it in the same day. They also provided clear instructions for calling the IRS with specific phrases to use that would help expedite my case. My payment plan is now set up and the lien warning has been removed from my account! Honestly wish I'd found this sooner before all the stress.

The real issue you're facing is actually getting through to the IRS to fix this. I spent WEEKS trying to reach someone when I had a similar payment plan issue. After endless busy signals and disconnections, I found https://claimyr.com which got me through to an IRS agent within 2 hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c With amounts that high and a lien threat, you definitely need to speak with a real person at the IRS. The regular phone lines are absolutely swamped, and you can't afford to wait days or weeks for a callback. Once I got through, the agent was able to put an immediate hold on collections while we sorted out the payment plan details.

I take back what I said. I was so skeptical about Claimyr that I decided to test it myself while waiting for responses here. I honestly can't believe it, but I got connected to an IRS agent in about 90 minutes after literally weeks of trying on my own. The agent was able to confirm that no payment plan was ever actually set up by my tax preparer (big surprise). They put a 30-day hold on collections while we worked out an installment agreement right over the phone. I had to provide some financial information, but they set up a monthly payment that was actually manageable. The agent even gave me her direct extension number for follow-up questions. For anyone facing a lien situation like the original poster - don't wait like I did. Getting through to a human at the IRS makes all the difference.

One thing nobody's mentioned yet - go back to HR Block ASAP! If they told you they set up a payment plan but didn't, that's their mistake and they should help fix it. Many of their offices have an accuracy guarantee. Bring all your notices and documentation from your original appointment. I had a similar issue with a different tax prep company. They ended up covering the penalty fees when it was clear their preparer had made promises they didn't follow through on. At minimum, they should help you navigate the resolution process at no additional cost.

Make sure you request a payoff amount when you talk to the IRS! The interest and penalties continue to accrue daily, so the amount you owe now is higher than the original $39k. When you set up your payment plan, get a clear breakdown of principal, interest, and penalties so you know exactly what you're paying for. Also, depending on your financial situation, you might qualify for an Offer in Compromise where you settle for less than the full amount. Worth asking about if you truly can't afford the full payment over time.