If you owe the IRS, you may be hesitant to contact them over the phone. That’s understandable, and if you qualify, you may not even have to.
The IRS has established an online, interactive system whereby a monthly installment plan can be established without ever having to speak to an account or collection representative. Here’s what you need to know:
- Your total tax debt must be under $25,000. This is a dollar threshold that the IRS uses when determining qualifications for an installment agreement. Taxpayers who owe more than $25,000 may still qualify for a repayment plan, but they must first provide financial information so that an IRS representative can review other alternatives or determine the appropriate amount to pay per month.
- You and or your Power of Attorney can apply for the installment plan. Your Power of Attorney must have their authorization on file with the IRS prior to doing this.
- You will need your Social Security number, a PIN number if you have one (if you do not, you will need your IRS notice which will have a Caller ID number displayed on it), and you will need to have an idea of the amount you wish to pay. Remember, pay as much as you can per month to help reduce penalty and interest.
- If your proposal is accepted, you will be notified immediately. If the amount you owe is too high, or if the amount you propose to pay is too low, you will be prompted to either speak to a representative or mail in your request to an address that will be provided to you on the phone.
If you do not have a balance due notice but still wish to establish an online payment plan, you will need to know the amount you owe in whole dollars, you and your spouse’s Social Security numbers, your date of birth, as well as the total amount of your Adjusted Gross Income and the total tax amount as reported on your previous year return.
If you have delinquent or overdue tax returns, you will not be able to establish a payment agreement. A taxpayer must be in compliance with their legal filing obligations before the IRS is willing to establish an installment agreement.
On the online system, you may either request a date to pay off your balance in full, set up a short term extension to full pay (either up to 60 or 120 days, depending on how delinquent your balance has become), or establish an installment agreement (a monthly repayment plan). The IRS will charge a user fee up to $105 to cover the cost of a long term payment plan.
Got it? OK. Use the link below from IRS.gov to start this process.
Enter Online Payment Agreement Application