IRS Payment Plan

Trying to configure Internal Revenue Services (IRS) payment plans? We know it can be tricky. Victory Tax Lawyers can show you how to set up a payment plan with the IRS. Our friendly attorneys will help you understand the details of a payment plan that best suits your tax situation. If you owe taxes but missed your deadline, you may be subject to interest and monthly late fees. Penalties or fees may apply if you fail to complete filing entirely. If you cannot pay the monthly payment amount, it is recommended that you submit an installment agreement request.

A payment plan stands as an agreement between a taxpayer and the IRS to pay tax bills within a given time period. If you are not confident that you will be able to pay the entirety of the tax bill, you can install a payment plan to avoid penalties or interests. By providing your information, the IRS will then clarify which payment plan options are available to you. Victory Tax Lawyers can then help you choose the best payment plan for your situation.

Failing to pay your taxes when due may lead to a Notice of Federal Tax Lien and/or an IRS tax levy action.

Apply online, by phone, mail, or in-person with no extra fees. By choosing the Pay Now method, you avoid any future penalties or interest.

Pay the total amount owed to the IRS in full by check, money order, debit card, or credit card. Some fees may apply when paying by card.

Apply online, by phone, mail, or in-person with no fee. Includes additional penalties and interests until the full balance is paid in entirety.

Fees apply when paying by automatic payments from your bank’s checking account. Checks, money orders, debit cards, and credit cards are accepted as verified payments.

Apply online, by phone, mail, or in-person, for a $107 setup fee. There is no fee if you are low income.

Pay through direct automatic transactions from your checking account, commonly referred to as a Direct Debit Installment Agreement (DDIA).

Pay the total amount due via a non-direct electronic medium of payment, such as DirectPay, or your debit/credit card. Some fees may apply if paid by card.

If applied online: $149 setup fee; while for low-income payers a $43 setup fee is required, with a possibility of reimbursement. Read low-income terms and conditions here.

If your application is done via phone, mail, or in-person, a $225 setup fee is required. Low-income taxpayers must pay a $43 setup fee that could be reimbursed if terms and conditions of low income are met. This includes the total amount of penalties and interest until the balance is paid in full.

If applied online: $10 fee.

By phone, mail, or in-person changes of payment plans not related to automatic payments from bank account: $43 fee that may be reimbursed within the framework of certain conditions.

If you apply online, by phone, mail, or in-person changes to payment plans through an electronic method of payment via Direct Debit Installment Agreement option, no fee is required.

Over time of payment, interest and penalty charges continuously add until the total balance is paid in full. Visit the IRS pages on penalties and interest for more information.

The federal organization, Office of Management and Budget, administers federal agencies to financially charge for the Installment Agreement program. According to the IRS, the charges will subsequently fund the processing of installment agreements.

See Form 13844: Application for Reduced User Fee for Installment Agreements (PDF) if you believe you meet the necessary prerequisites for low-income taxpayer status, but the IRS misidentified you. Submit the form, if applicable, to:

Internal Revenue Service PO Box 219236, Stop 5050

Kansas City, MO 64121-9236

The interest rate on an IRS Payment Plan is not a fixed rate but rather based on the federal short-term interest rate plus a predetermined percentage. Here’s how it works:

To find the most up-to-date information on IRS Payment Plan interest rates, you can visit the official IRS website or contact the IRS directly. They regularly update the rates and provide clear guidance on their website.

Here are the steps to check the current interest rate:

Alternatively, you can contact the IRS through their toll-free phone line to inquire about the current interest rates for payment plans.

Understanding how interest accrues on your IRS Payment Plan is crucial. Interest typically begins to accrue from the date your tax liability is assessed until you pay the full amount. Here’s a breakdown of how it works:

While you may not have control over the federal short-term interest rate, there are strategies you can employ to minimize the interest you pay on your IRS Payment Plan:

It’s crucial to make all your scheduled payments on time to avoid defaulting on your IRS Payment Plan. If you miss a payment or fail to meet the terms of your agreement, the IRS may consider your plan in default. Consequences of default can include:

To prevent default, always communicate with the IRS if you encounter financial difficulties that affect your ability to make payments. They may be able to modify your plan to better suit your current situation.

If you have formerly registered for an Online Payment Agreement; Get Transcript; or an Identity Protection Pin (IP PIN), use the same login user ID and password to confirm your identity. The following information listed is necessary:

According to the IRS, there are various ways to apply as:

Knowing your IRS payment plan options for the tax you owe and tax due dates is important. Pay your taxes and avoid further tax issues with Victory Tax Lawyers. Allow us to notify you of your eligibility and apply the best payment plan option available.

Not certain about IRS payment choices? Our expert team has garnered numerous favorable reviews from both colleagues and clients. Reach out to our amiable representatives if you encounter difficulties while filing your tax return.