How To Set Up A Payment Plan With The IRS
Many Americans are wondering if it’s still possible to arrange a payment agreement with the IRS before the 2023 tax deadline.
The answer is yes. giving a taxpayer the opportunity to pay their taxes on a timeframe set by the government, saving them from penalties and other fees.
A payment plan is an option for individuals that don’t think they’ll be able to pay their taxes by the deadline, with the IRS giving them the opportunity to do so over a short-term payment plan.
Those who request a payment plan or Installment Agreement (IA) will have the IRS collection suspended or prolonged according to the IA. If they’re rejected they’ll still have 30 days of their collection suspended so they can make plans to pay their taxes.
If the IRS approves a taxpayer’s payment plan or Installment Agreement, they will have one of the following fees added to their tax bill. For individuals the balances that surpass $25,000 should be paid by Direct Debit, while for businesses that maximum balance is only $10,000, with the rest having to be paid by Direct Debit as well.
Taxpayers can apply for the Installment Agreement by phone or by mail, using Form 9465 otherwise known as Installment Agreement Request.