Get Income Tax Installment

Is the IRS suspending new Installment Agreements/Payment Plans? A. No. In fact, the IRS reminds people unable to fully pay their federal taxes that they can resolve outstanding liabilities by entering into a monthly payment agreement.

The IRS considers extravagant expenses as those that include charitable contributions, private school funding and hefty credit card payments. In addition, if you fail to provide accurate information on Form 433-A, Collection Information Statement, you can expect your agreement to be rejected.

You may qualify to apply online if: Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns. Short-term payment plan: You owe less than $100,000 in combined tax, penalties and interest.

Fees for IRS installment plans If you cannot pay off your balance within 180 days, setting up a direct debit payment plan online will cost $31, or $107 if set up by phone, mail, or in-person using Form 9465. If not using direct debit, then setting up the plan online will cost $130.

If IRS computers show that you haven't filed all past due tax returns, you will not be eligible for an IA. Likewise, if you are self-employed, you must be current on your quarterly estimated tax payments for the current year.

The IRS is still processing requests and installment agreements. Individuals who owe $50,000 or less in combined income tax, penalties and interest and businesses that owe $25,000 or less in payroll tax and have filed all tax returns may qualify for an Online Payment Agreement.

What if the IRS rejects my request for an installment agreement? The IRS does reject requests for payment plans sometimes – if this happens to you, you have the right to appeal. You must request an appeal within 30 days of the rejection by submitting Form 9423, Collection Appeals Request.

Your specific tax situation will determine which payment options are available to you. Payment options include full payment, short-term payment plan (paying in 180 days or less) or a long-term payment plan (installment agreement) (paying monthly).