Letter 4052, Rejection of Proposed Installment Agreement, tells you the IRS rejected the payment plan you proposed. Revenue officers often send it at the same time as Letter 1058, the Final Notice of Intent to Levy, which means two separate deadlines may be running.
Levy Protection During the Appeal Window
Under IRC Section 6331(k)(2), the IRS generally cannot levy for 30 days after rejecting an installment agreement, and if you appeal within those 30 days, it cannot levy while the appeal is pending. That protection exists only if you act. Let the 30 days pass and it is gone.
How to Appeal
An installment agreement rejection can be appealed through the Collection Appeals Program using Form 9423. If you also received Letter 1058, a Collection Due Process request on Form 12153 within 30 days of that letter gives you a broader hearing with Tax Court review. Many representatives file both.
Why Agreements Get Rejected
The usual reasons are a proposed payment the IRS considers too low based on your financial statement, unfiled returns, missing financial information, or expenses that exceed IRS standards without support. Fix the underlying problem and your appeal has a real chance.
If you received Letter 4052, call us at (813) 229-7100. The 30-day window is the whole ballgame.