The IRS has introduced new changes to their Installment Agreement programs. These changes affect the schedule of fees for these services.
The changes described in this article took effect on January 1, 2017. The new regulations apply to all new installment agreements as well as any installment agreement that need to be revisited. If you reinitiate or reinstate an existing installment agreement, the new fees will apply!
In addition to the increase in fees, two new online installment agreements are being added, each with its own set of fees.
One important point to keep in mind is that you need to file ALL required tax returns before applying for an installment agreement. This is part of being in compliance with the IRS.
Online Payment Agreements
You may be eligible for an Online Payment Agreement if you:
- Are an individual who owes $50,000 or less in combined individual income tax, penalties and interest, and you filed all of your tax returns
- If you have a business and you owe $25,000 or less in payroll taxes, and have filed all of your tax returns
- If you meet the above criteria you can apply for an online payment agreement here
“Off-line” Payment Agreements
Even if you do NOT qualify for the convenience of the Online Payment Agreement, this does not mean you are out of luck. You still have the option of entering into one the traditional Installment Agreement payment plans that are available. All you need to do is:
- Complete and mail Form 9465, Installment Agreement Request (PDF);
- Complete Form 433-F, Collection Information Statement (PDF); and once completed,
- Call (800) 829-1040 or the phone number on your bill or notice to enter into an agreement.
Important Details to Know
- Future refunds will be applied to your tax debt until it is paid in full
- You must pay at least your minimum monthly payment amount when it is due
- You should include your name, address, SSN, daytime phone number, tax year and return type on them memo section of your payment
- In order to keep the installment agreement in effect, you need to file all future tax returns on time & pay any tax due in full and on time (contact us to change reinstate existing agreement if you cannot full-pay your liability)
- Make all scheduled payments until the balance is paid, even if a refund is applied to your account balance
- Ensure your statement and other correspondence is sent to the correct address. Contact the IRS if you move by telephone or by completing and mailing in Form 8822, Change of Address (PDF)
Much of this information comes from the IRS website. Complete details are available here:
*This article should be considered as a source of information only. Please consult a qualified tax professional before making any decisions about your taxes.