Manassas, VA asked in Business Law and Tax Law for Virginia

Q: Is an installment plan being delinquent on a federal debt?

I am completing form 306 for federal employment. It asks if I am delinquent on any federal debt. I am on an installment plan for last year’s tax. Do I say yes or no?

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James L. Arrasmith
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Answered

A: When completing Form 306 for federal employment, it's important to understand what the term "delinquent" means in this context. Being on an installment plan with the IRS does not automatically mean you are delinquent. As long as you are current on your payments and adhering to the terms of the installment agreement, you are not considered delinquent on your federal debt.

The key point is whether you have missed any payments or are behind on your agreed schedule. If you are making your payments on time according to the installment plan, you should answer "no" to the question about being delinquent.

However, if you have missed payments or failed to comply with the installment agreement, then you would need to answer "yes." Always ensure that your responses are accurate and truthful to avoid any issues later on.

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