How to pay your taxes – if you can’t pay in full: Installment Agreement (Part II)
If you request a payment plan online you will receive immediate notification if your agreement is approved. If you request a payment plan by mail, you can reduce the accrual of penalties and interest by making voluntary payments until you’re notified whether they have accepted your payment plan request. The IRS acceptance of your interim payments doesn’t mean they have approved your request. The IRS will notify you in writing once they have made their decision.
With an Installment Agreement, you can pay by:
· direct debit,
· through payroll deductions,
· electronic funds transfer, or
The setup fee is reduced if you make your payments by direct debit. You can also pay a reduced user fee if you meet their low-income guidelines. The reduced fee can even be waived completely or reimbursed if you meet the IRS low-income guidelines. For more information, see Form 13844, Application for Reduced User Fee for Installment Agreements. You do not need to submit the user fee with your installment agreement application. The fee can be taken from the initial payments made once the installment agreement is accepted.
Next week – Additional information on eligibility for an IRS Installment Agreement
(IRS Publication 594 and IRS.gov) (TTT 09/03/19)