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An IRS payment plan, in its general sense, represents a type of agreement that the taxpayer makes with the agency and which provides a way for you to pay your owed amount over a longer period. There are two different types of payment plans with the IRS: long- and short-term plans. 

The main idea about getting a payment plan with the IRS is that the agency would much prefer to collect what you owe in any possible way than not collect anything at all. This is why, if you simply cannot pay all of your taxes in due time, the possibility of an IRS payment plan exists. Keep in mind that when you do not pay your taxes on time, the IRS will also add interest and penalties to that amount which will increase it and therefore make it even more difficult to pay. This is where the solution of a payment plan with the IRS comes in. In this article, we will discuss all the important details about the IRS tax payments help that you can get in the form of an IRS payment plan and how you can set up a payment plan. Here we go!

How can you apply for an IRS payment plan?

Applying for an IRS payment plan is extremely easy and can be done either by the taxpayer himself or by a legal representative, such as an attorney. The good news is that you don’t necessarily need to call the agency and talk to someone to apply. They understand that this can get overwhelming which is precisely why they allow taxpayers to go for a payment plan with the IRS online, on the official website via a form, or via e-mail. 

• To qualify for a long-term IRS tax payments help, you need to owe below $50,000 in tax, interest, and penalties. You also need to have filed all of the necessary tax returns;
• To qualify for a short-term IRS tax payments help, you need to owe below $100,000 in tax, interest, and penalties.

Another thing to know about an IRS payment plan is that when you request one, the IRS can no longer collect anything from you and cannot levy. Usually, a request for an IRS payment plan has a pending status until a representative reviews it and either accepts or rejects it. In case of the latter situation, you will have thirty days until the IRS resumes its time to collect what you owe. 

What about the fees of an IRS tax payments help?

The fees that you will have to pay when deciding to go for an IRS tax payments help differ on the type you choose, the owed amount, how you choose to apply, and whether or not you can get a reduction. 

In the case of a short-term IRS payment plan that lasts 120 days and for which you need to owe a maximum of $100,000, applying is completely free. You also have a few options through which you can choose to pay what you owe, like:

• Direct Pay through withdrawals from your savings or checking accounts;
• Through the IRS Electronic Federal Tax Payment System, meaning phone payments or e-pay;
• Via a debit or credit card, money order, or check.

In the case of a long-term IRS payment plan that lasts 120 days or more and for which you need to owe $50,000 or less, applying is not free. Plus, there are some other fees that you also need to take into account:

• In case of payments through automatic debit withdrawals, you will need to pay a $31 setup fee when applying online and a $107 one when applying in person or by phone. The good news is that if you are a low-income taxpayer (have an adjusted gross income of 250% or below this threshold of the federal level of poverty) these fees can be waived;
• In case of payments through any other methods (mentioned above), you will need to pay a $130 setup fee when applying online and a $225 setup fee when applying in person, via e-mail, or by phone. There is also a $43 setup fee for low-income taxpayers which the IRS can later reimburse. 

If we are to discuss some other fees that you might have to pay when applying for an IRS payment plan, you should know that:

• Paying with a credit or debit card means that you will need to also pay a processing fee. For debit cards, the fee is between $2 and $4 per payment while for credit cards you might need to pay up to 2% of the transaction;
• Owing more than $25,000 to the IRS means that you will e obliged to pay through direct debit. This means that the agency will make automatic withdrawals from your account;
• In case you need to change an IRS tax payments help, you will need to pay a $10 fee for revising online or an $89 one for revising in-person or by phone.

What info do I need to provide when applying for a payment plan with the IRS?

Whenever you are planning to set up a payment plan, you need to make sure that you have all the necessary information. Regardless of how you want to apply, you will need to provide personal details that will confirm your identity. You will also need to provide your filing status, owed amount, and financial details. The good news is that if you already have an online account, you can simply log in. You can also complete the IRS Form 9465 and mail it straight to the agency to apply. 

In case you want to make changes to your IRS tax payments help, the agency has an online tool for that. You can change your monthly payment amount, reinstate a previous payment plan with the IRS, establish automatic withdrawals, or change your monthly payment deadline. 

All in all, when deciding to apply for a payment plan with the IRS, the best thing that you can do is to be informed. If you want to set up a payment plan, make sure that you read all the important details on the agency’s website and go from there. IRS tax payments help can be a blessing if you are behind on your taxes but this doesn’t mean that it will automatically save you from back taxes. In case you are unsure about setting up a payment plan with the IRS, you can always enlist the help of an attorney or tax-relief company

An IRS payment plan, also known as an installment agreement, is a way for taxpayers to pay off their outstanding back taxes to the Internal Revenue Service (IRS) in manageable monthly payments. These payment plans are available to individuals, self-employed individuals, and businesses who are unable to pay their back taxes in full by the tax filing deadline.

There are several types of IRS payment plans to choose from, including short-term payment plans, long-term payment plans, and streamlined installment agreements. The type of payment plan that is right for you will depend on the amount of back taxes you owe and your financial situation.

Short-term payment plans are for taxpayers who can pay off their back taxes in 120 days or less. These payment plans do not require a fee to set up, and taxpayers are not required to provide financial information to the IRS. However, taxpayers who choose a short-term payment plan will be charged interest and a late payment penalty on their outstanding back taxes until they are paid in full.

Long-term payment plans are for taxpayers who need more time to pay off their back taxes. These payment plans are available for back taxes of more than $50,000 and require a fee to set up. Taxpayers who choose a long-term payment plan will also be charged interest and a late payment penalty on their outstanding back taxes until they are paid in full.

Streamlined installment agreements are a type of long-term payment plan that is available to taxpayers who owe $50,000 or less in back taxes. These payment plans do not require a fee to set up and do not require taxpayers to provide financial information to the IRS. However, taxpayers who choose a streamlined installment agreement will still be charged interest and a late payment penalty on their outstanding back taxes until they are paid in full.

To apply for an IRS payment plan, taxpayers can visit the IRS website and use the Online Payment Agreement tool to see if they are eligible for a payment plan and to apply for one online. Taxpayers can also apply for a payment plan by completing and submitting Form 9465, Installment Agreement Request, to the IRS.

It is important to note that taxpayers who are unable to pay their back taxes in full should not ignore their back taxes or avoid contact with the IRS. Doing so could result in additional penalties and interest, as well as wage garnishment, bank levies, and property liens. Instead, taxpayers should consider applying for an IRS payment plan to resolve their back taxes and avoid additional consequences.

If you are struggling to pay your back taxes and are considering an IRS payment plan, it is important to carefully consider your options and choose the payment plan that is right for your financial situation. You may also want to consider seeking the assistance of a tax professional or financial advisor to help you understand your options and make the best decision for your specific circumstances.

In summary, an IRS payment plan, also known as an installment agreement, is a way for taxpayers to pay off their outstanding back taxes to the IRS in manageable monthly payments. There are several types of payment plans to choose from, including short-term payment plans, long-term payment plans, and streamlined installment agreements. To apply for a payment plan, taxpayers can use the Online Payment Agreement tool on the IRS website or complete and submit Form 9465, Installment Agreement Request. It is important for taxpayers who are unable to pay their back taxes in full to consider an IRS payment plan to avoid additional penalties and consequences.