If you opt for your monthly tax payments by electronic cash withdrawal, you will also need to provide your bank account and routing numbers. The IRS guarantees acceptance of your remittance plan application if all of your tax returns have been filed within the last five tax years and all taxes have been paid on time and you have not entered into a payment agreement in instalments. In addition, your request for a remittance agreement must be made out of necessity rather than preference, and your tax payable must be $10,000 or less. If you are unable to review an existing payment contract online, call us at 800-829-1040 (individual) or 800-829-4933 (business). If you have received a notice of defect and are unable to make changes online, follow the instructions in the letter and contact us immediately. Apply online using the online payment agreement tool or apply by phone, mail or in person at an IRS walk-in office by submitting Form 9465, Application for Payment Agreement. If you file Form 9465 with your return, attach it to the front of your return when you file it. If you are filing Form 9465 separately from your return, refer to the following tables to determine the correct filing address. Form 9465 can be used to request a instalment payment plan, but should not be used if the taxpayer expects to pay their tax payable within 120 days, or if they want to use the IRS`s online payment agreement application to request a instalment payment agreement. To read the instructions for requesting a remittance agreement, click here. Instalment payment agreements are not guaranteed. The user fee exemption or refund applies only to individual taxpayers whose gross income is adjusted, for example for the last year for which such information is available, at a level below or below 250% of the applicable federal poverty line (low-income taxpayers) who enter into long-term payment plans (instalment agreements) as of April 10, 2018.
If you are a low-income taxpayer, the user fee will be waived if you agree to make payments by direct debit by entering into a Direct Debit Agreement (DDIA). If you are a low-income taxpayer but are unable to make payments by direct debit by entering into a DDIA, the user fee will be refunded to you after entering into the remittance agreement. If the IRS system identifies you as a low-income taxpayer, the online payment settlement tool automatically reflects the applicable fees. A instalment payment agreement allows the taxpayer to break down their tax debts into manageable payments. Typically, a installment payment requires equal monthly payments based on the amount of taxes due, the amount of money the IRS can collect at a time, and the number of periods in which they are allowed to collect the funds from the taxpayer. Installment agreements are not an ideal way to settle a tax liability because the taxpayer always incurs default penalties and interest during the term of the contract. Under the guaranteed acceptance, you must not take more than three years to pay your taxes, and you must agree to comply with all tax laws for the duration of the contract. .