How to Cancel Your IRS Payment Plan After Amending Your Tax Return

Let’s say that you did your taxes, owed money, and arranged a payment plan with the IRS for your tax debt. But then, you realized you made a mistake on your return, so you filed an amended tax return that shows that you owe less or nothing at all to the IRS. In this situation, you can’t forget about the payment plan you set up. You have to cancel it.

You might be feeling overwhelmed by all the moving pieces: amendment delays, payment drafts, IRS letters piling up. This article shows you exactly what to do and when, so you can confidently take control and stop your IRS payment plan once your amended return is processed. 

What is an amended tax return? 

An amended tax return is a do-over for a tax year you already filed, usually because something changed or you caught a mistake. You will use Form 1040-X to make the fix. 

Common reasons to amend include: 

• You received a corrected W-2 or 1099 after filing 
• You forgot to claim a deduction or tax credit 
• You accidentally left off income 
• You entered something incorrectly, such as filing status or dependents 

It is a smart move to correct the record. However, amended returns can take up to 16 weeks or more to process with the IRS. You may need to keep making those payments until everything is officially updated, even if your amended return wipes out the balance. 

The IRS will not pause or cancel your plan while your amended return is pending. Auto-payments could still come out, even if you end up not owing anything. 

How do IRS payment plans work? 

When you cannot pay your full tax bill when it is due, the IRS allows you to spread it out with a payment plan, also called an installment agreement. 

Here is what you should know: 

• Most plans involve monthly payments, often automatically debited from your bank account 
• You still need to file and pay future taxes on time, even while on a plan 
• The IRS will not automatically adjust your payment plan if your tax balance changes, such as after an amendment 
• You are responsible for contacting them to cancel or update the agreement 

This is why it is so important to check your account and act quickly after your amended return is processed. 

What if I don't cancel my payment plan after an amendment? 

Your amended return may bring your balance to zero or result in a refund. If you do not cancel your plan, the payments will just keep coming out. 

Here is what could happen: 

• You might overpay the IRS unnecessarily 
• Any extra payments might be applied to old tax debts if you have them, but not always 
• If you are due a refund, it could get intercepted, also known as offset, and applied toward your payment plan 

The IRS is not in a rush to stop taking money. If your balance has changed, it is up to you to stop the flow. 

Step-by-Step: How to Cancel Your IRS Payment Plan 

Here is how to cancel your plan the right way and in the right order: 

1. Request a temporary hold after filing the amendment 

• Call the IRS soon after submitting your amended return (Form 1040-X) and ask for a temporary hold to be placed on your installment agreement, typically for 30, 60, or 90 days 
• Explain that you’ve filed an amended return that will reduce or eliminate your tax balance, and you are waiting for it to be processed 
• Important: Do not cancel the payment plan yet. This hold gives the IRS time to process your amendment without risking plan default in case the IRS does not accept the changes. 

2. Verify that your amended return was processed 

• Use the IRS “Where’s My Amended Return?” tool to check the status or call the IRS at 866-464-2050 for updates 
• Wait for confirmation, such as a refund issued or a notice showing your new reduced balance 

3. Double-check your IRS online account 

• Log in at IRS.gov/account 
• Look for updates to your balance and any recent IRS notices 

4. Make sure there aren’t other tax debts 

• Even if one year’s balance is zero, payments may continue if you owe for another year 
• Review your account for any outstanding balances before canceling 

5. Track any payments made since you filed the amendment 

• Make a list of what has been paid, especially if you were on auto-debit 
• This will help you catch any overpayments you may be owed back 

6. Contact the IRS to cancel your plan 

• Call the number on your payment plan agreement or your most recent IRS notice 
• Have your agreement number and personal information ready 
• Clearly explain that your amended return has been processed and request cancellation of your installment agreement 

7. Get and keep written confirmation 

• Ask the IRS for written confirmation that your payment plan is canceled 
• Watch your bank account to ensure automatic withdrawals actually stop 
• If you have overpaid, ask about the refund process and timeline 

Hidden Pitfalls 

This process is manageable, but there are a few speed bumps to keep in mind: 

• You may need to cancel auto-debit separately through your bank if payments do not stop promptly 
• Delays can happen. The IRS may take time to process your cancellation. Stay alert and follow up. 
• If you still owe for other years, canceling might not be an option yet 
• Complex tax situations, such as having multiple years or payment plans in play, may warrant talking to a tax professional 

What if something goes wrong? 

Even with the best preparation, things can get messy. Here is what to do if something does not go as planned: 

• If you are still waiting after 16 weeks, call the IRS to check your amended return status 
• If payments are still coming out, document every interaction. Keep a paper trail and ask to escalate if needed. 
• If IRS letters do not match your records, request clarification and keep copies of everything 
• If you are unsure about what you are looking at, reach out for help 

The Bottom Line 

Your amended tax return may have changed your balance. The IRS will not cancel your payment plan for you, but you absolutely can. Taking control now means avoiding overpayments, keeping your records clean, and giving your business one less thing to worry about. 

If you need help sorting through it, you do not have to go it alone. Whether it is calling the IRS or navigating complex tax records, a professional can help you get clarity and move forward with confidence.