The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-1)

The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-1)

What if I can’t pay my taxes?

Don’t panic – you may qualify for a self-service,  online payment plan  (including an
installment agreement) that allows you to pay off an outstanding balance over time. Once
your online application is complete, you’ll receive immediate notification of whether your
payment plan has been approved without having to call or write to the IRS. Online
payment plans are processed more quickly than requests submitted with electronically
filed tax returns, even if the new tax is not yet assessed.

ONLINE PAYMENT PLANS INCLUDE:
 Short-term payment plan – The payment period is 120 days or less and the total
amount owed is less than $100,000 in combined tax, penalties and interest.
 Long-term payment plan – The payment period is longer than 120 days, paid in
monthly payments, and the amount owed is less than $50,000 in combined tax,
penalties and interest.

If the IRS approves your long-term online payment plan (installment agreement), a setup
fee may apply depending on your income.
If you already have a payment plan, you may also qualify to use the online payment plan
option to revise your existing agreement. Changes you can make online include revising
payment dates, payment amounts and banking information for Direct Debit Installment
Agreements.

If you don’t qualify for an online payment plan, you may also request an installment
agreement (IA) by submitting  Form 9465, Installment Agreement Request PDF, with the
IRS. If the IRS approves your IA, a setup fee may apply depending on your income.
Refer to  Tax Topic No. 202, Tax Payment Options .

If you request an IA, the time the request is pending pushes out, or suspends the running
of, the initial ten-year collection period. An IA request is often pending until it can be
reviewed, and an IA is established, or the request is withdrawn or rejected. If the
requested IA is rejected, the running of the collection period is suspended for 30 days.
Similarly, if you default on your IA payments and the IRS proposes to terminate the IA,
the running of the collection period is suspended for 30 days. Last, if you exercise your
right to appeal either an IA rejection or termination, the running of collection period is
suspended by the time the appeal is pending to the date the appealed decision becomes
final. Refer to  Tax Topic No. 160, Statute Expiration Dates .
(IRS Web Site Updated 08/22) (TTT 08/02/22)