You can make monthly payments through an installment
agreement if you're not financially able to pay your tax debt
immediately. However, you will reduce or eliminate the amount of
penalties and interest you pay and avoid the fee associated with
setting up an installment agreement if you pay your tax bill in
full. Before you apply:
- File all required tax returns;
- Consider other sources (loan or credit card) to pay your
tax debt in full to save money;
- Determine the largest monthly payment you can make ($25
minimum); and
- Know that your future refunds will be
applied to your tax debt until it is paid in full.
Fees for setting up an installment agreement:
- $52 for a direct debit agreement;
- $105 for a standard agreement or payroll deduction
agreement; or
- $43 if your income is below a certain
level.
Apply for an installment agreement
Understand your agreement, avoid default
To keep your account in good standing:
- Pay at least your minimum monthly
payment when it's due (direct debit or payroll deductions
make this easy);
- Include your name, address, SSN, daytime phone number, tax
year and return type on your payment;
- File all required tax returns on time;
- Pay all taxes you owe in full and on time (contact us to
change your existing agreement if you cannot);
- Continue to make all scheduled payments even if we apply
your refund to your account balance; and
- Ensure your statement is sent to the
correct address, contact us if you move or complete and mail
Form
8822, Change of Address (PDF).
If you don't receive your statement, send your payment to the
address listed in your agreement.
There may be a reinstatement fee if your agreement goes into
default. Penalties and interest continue to accrue until your
balance is paid in full. If you are in danger of defaulting on
your payment agreement for any reason, contact the IRS
immediately. The IRS will generally not take enforced
collection actions:
- When an installment agreement is being
considered;
- While an agreement is in effect;
- For 30 days after a request is rejected, or
- During the period the IRS evaluates an
appeal of a rejected or terminated agreement.
Page Last Reviewed or Updated: 30-Oct-2013
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Above limited
information is intended for informational purposes only. If legal
advice or other expert assistance is required, the services of a
competent professional should be sought, and this general information
should not be relied upon without such professional assistance.
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wants you ... you want TaxSOS.com
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