What Is The Fee For Setting Up An Installment Agreement For Tax Year 2018

As of January 1, 2019, the user fee is $10 for instalment payment agreements that have been reinstated or restructured through an online payment agreement (OPA). You must have determined that an OPA will reinstate or restructure the instalment agreement in order to be eligible for the reduced user fees. Low-income taxpayers may be reimbursed for these expenses under certain conditions. See Requirements for modifying or terminating a payment agreement at a later date. 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. Additional text about your tax payment and your provision of up-to-date financial information has been added to Form 9465 if you wish. See Requirements for modifying or terminating a payment agreement at a later date. The IRS will not approve your instalment payment agreement if you have not already filed all your tax returns. You must be up to date before you can request a monthly payment plan. Irs payment plans are on hold if you are financially able to repay everything you owe within 72 months.

However, if you want to reduce what you owe, a payment plan won`t help. There are several ways to reduce your tax debt. With a balance due of more than $10,000, you may be eligible for an optimized payment plan. There is a fee of $89 to modify or terminate the instalment payment agreement ($43 for low-income taxpayers). In addition, interest and penalties are applied to the outstanding balance until it is paid. On line 11a, enter the amount you can pay each month. Make your payments as large as possible to limit interest and penalty fees. The fees will continue to apply until you pay them in full.

If you have already entered into a instalment payment contract, this amount must represent the total amount of the proposed monthly payment for all your liabilities. If no payment amount is shown on line 11a (or 11b), a payment will be determined for you by dividing the balance due by 72 months. Online application for a instalment payment contract and other payment plans. If you have additional balances that are not shown on line 5, enter the amount here (even if they are included in an existing instalment contract). .