Applying For An Individual Tax Payment Plan

Qualified taxpayers who cannot pay what they owe to the IRS can apply for a payment plan that allows them to pay off their balance over time. The types of payment options that are available to a taxpayer will depend on his or her specific tax situation. For instance, payment options could include full payment, a short-term plan (paying in 180 days or less), or a long-term payment plan, also known as an installment agreement, which must be paid monthly.

Short-Term Payment Plans

There are a variety of payment plans that taxpayers can qualify for if they owe tax debt to the IRS. Short-term plans, for instance, will give taxpayers 180 days to repay their debt, either directly from a checking or savings account, or by check, money order, or credit card. Although there isn’t a setup fee for a short-term plan, a taxpayer will need to pay off accrued penalties and interest until the balance is paid in full.

Long-Term Payment Plans

Taxpayers who owe the IRS can also enter into a long-term payment plan, or installment agreement. These agreements require monthly payments, which can be paid either automatically though Direct Debit, or through non-automated monthly payments. The former is always required for those who owe more than $25,000 to the IRS. Those who owe a lower amount and who are willing to pay a higher set up fee, can instead pay their amounts through non-automated payments taken directly from a checking or savings account, or via money order, check, or debit or credit card. Like short-term payment plans, long-term installment agreements require taxpayers to pay off accrued penalties and interest in full.

Applying for a Payment Plan

When applying for a payment plan online, a taxpayer will need to create an account with ID.me and provide the IRS with photo id. Those who apply for a direct debit payment plan will also need their bank routing and account numbers. Finally, an applicant will need the balance due that is shown on his or her tax return.

Revising an Existing Payment Plan

Taxpayers who have already entered into individual payment plans with the IRS still have the option of revising the type of agreement, due date, or payment amount. In fact, taxpayers can make some of the changes online, including changes to their monthly payment amounts and due date. They can also convert an existing agreement to a Direct Debit plan, can change their bank routing and account numbers, and can even reinstate a new payment plan upon default.

Do You Qualify for an IRS Payment Plan?

If you owe a tax payment to the IRS and believe that you might qualify for a payment plan, call experienced Florida and IRS tax debt and installment agreement lawyer, CPA, and former FBI Special Agent Ronald Cutler, P.A. for help applying. You can set up a free consultation by calling 386-490-9949, or by completing one of our online contact forms.

Sources:

irs.gov/payments/online-payment-agreement-application

irs.gov/node/16716#heading003