Note: To get this type of agreement, you must pay either by direct debit or by salary withdrawal agreement. If you cannot review an existing instalment payment agreement online, call us at 800-829-1040 (individually) or 800-829-4933 (business). If you have received a notice of delay and are unable to make changes online, follow the instructions in the letter and contact us immediately. In line 11a, enter the amount you can pay each month. Make your payments as large as possible to limit interest and penalties. The fee remains valid until you have paid it in full. If you have an existing instalment payment contract, this amount should represent the entire amount of your proposed monthly payment amount for all your commitments. If no payment amount is shown on line 11a (or 11b), a payment is intended for you by dedividing the balance due by 72 months. The IRS collects a user fee when you complete a payment plan. However, if you are a low-income taxpayer, this usage tax will be reduced and can be cancelled or refunded if certain conditions apply. For more information, see More information about payment plans.
A payment plan is an agreement with the IRS to pay the taxes you owe within a longer period of time. You should apply for a payment plan if you think you can pay your taxes in full within the extended period. If you qualify for a short-term payment plan, you are not responsible for any user fees. If you do not pay your taxes when they are due, this may lead to the sending of a notification of the federal tax deposit and/or an IRS tax action. See Publication 594, The IRS Collection Process PDF. If you have additional balances that are not shown on line 5, read the amount here (even if they are included in an existing tempe contract). Any adjustment or other fee which is not indicated in a declaration or notification must appear on this line. . A instalment payment agreement may be terminated if you provide substantially incomplete or inaccurate information in response to an IRS refresh request or if you provide such information to obtain the instalment payment agreement.
For more information about what to do when your instalment payment contract is terminated, see IRS.gov/CP523. Instalment payment agreements by direct debit and salary deduction allow you to automatically make payments in a timely manner and reduce the possibility of payment defaults. These comfortable payment methods also allow you to avoid the time and cost of sending monthly payments. Typically, the fee is $US 89 to change your instalment payment contract ($US 43 if you are a low-income taxpayer). However, as of January 1, 2019, the user fee is $10 for instalment payment agreements recovered or restructured through a takeover bid. This user fee only applies if the instalment contract has been reinstated or restructured by a takeover bid. If you are a low-income taxpayer and agree to pay by direct debit (from a checking account), you are entitled to a waiver of the user fee for the instalment payment. A low-income taxpayer who is unable to make electronic payments through a debit instrument by entering into a DDIA is entitled to a refund of the reduced user fee of USD 43 after the conclusion of the instalment payment agreement.
See line 13c, later, for more details. You can choose the day of each month when your payment is due. This can be on or after the first month, but no later than the 28th of the month. For example, if your rent or mortgage payment is due on the 1st of the month, you may want to make your instalment payment on the 15th. If we approve your request, we will inform you of the month and date your first payment is due. Requests to modify or terminate a payment agreement by instalments. Contact the IRS at 800-829-1040 (TTY/TDD 800-829-4059) or the communication number to discuss this option. If you find yourself in this situation, you should also consider a compromise offer to pay your taxes instead of a lumpout agreement.
By approving your application, we agree that you pay the tax you owed in monthly instalments, instead of immediately paying the full amount.. . . .