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How to pay your taxes – if you can’t pay in full: Installment Agreement (Part I)

How to pay your taxes – if you can’t pay in full: Installment Agreement (Part I)

An Installment Agreement (or payment plan) with the IRS means that they will allow you to make smaller periodic payments over time if you can’t pay the full amount at once. A setup fee applies to all agreements over 120 days. There are several ways to apply for an Installment Agreement:

(1) Online, using the Online Payment Agreement application at www.irs.gov/OPA. You can apply online for a reduced setup fee if the total combined balance of individual income tax, penalty and interest you owe is $50,000 or less. Short-term payment plans of 120-days or less and monthly installment agreements are available. If you own a business and owe $25,000 or less in combined payroll taxes, penalty and interest for the current and prior calendar year, you can also use the Online Payment Agreement to request an installment agreement. To view an instructional video on the Online Payment Agreement application, visit Online Payment Agreement.

(2) By phone Please call the number on your IRS bill or 1-800-829-1040.

(3) By mail Please complete Form 9465, Installment Agreement Request. In addition to Form 9465, if you want to make your payments by payroll deduction, complete Form 2159, Payroll Deduction Agreement. If you owe more than $50,000, you will also need to complete Form 433F, Collection Information Statement. Mail your form to the address on your bill.

(4) In person at your local IRS office near you, please visit www.irs. gov/localcontacts.

Next week – Additional information on an IRS Installment Agreement

(IRS Publication 594 and IRS.gov) (TTT 08/27/19)