Instalment Agreement Types & Eligibility, Apply @irs.gov

The Internal Revenue Service has introduced a ‘Payment Plan’ for those who owe tax and want to pay it within an extended timeframe. To avoid paying additional charges, it is mandatory to pay tax by the due date, because after the last date, one has to pay interest and penalty on the tax amount he or she owes. 

IRS Payment Plan

One who can’t pay the owed tax in one go usually chooses an option of payment plan (instalment agreement), with the help of which, one can pay the tax amount (he or she owes) in multiple instalments.

Tax Refund Schedule

IRS Refund Tracking

IRS Refund Status 2023

IRS Fresh Start Program

Tap to Check Finance Updates

Click to Check World News

There are mandatory payment plans i.e. instalment agreement, an individual can apply for the respective one, as per his or her eligibility. You need to know that most taxpayers, who submit an application for IA, become eligible to pay the tax amount using Online Payment Agreement (OPA). 

To get accepted for a payment plan option, one has to submit an online application, shortly after which, he or she receives a notification that his or her instalment agreement is approved or not. If it is approved by the IRS, then one has to pay the tax (he or she owes) within the extended due date.

IRS Instalment Agreement Plan Type 

To submit an application for IRS Instalment Agreement and choose any payment plan option to pay the owed tax amount, one doesn’t need to do any paperwork or call, he or she can do it by just visit the official webportal of Internal Revenue Service, which can be accessed officially by visiting at https://irs.gov/, there are two type of payment plan for an option, which are short-term and long-term, you may learn about them from below.

Short-term payment plan: One who owes tax of less than $100,00 in total, which includes combined tax, penalties and interest, he can extend due date upto 180 days to payment the among in instalments. One can apply for it online, by phone, mail, or in-person, he or she won’t be charged even a single penny for it. 

Post choosing an option of short-term payment plan, he or she will be able to pay the amount in instalments using a checking or savings account, Electronic Federal Tax Payment System, check, money order or debit/credit card.

Long-term payment plan: One who owes tax less than $50,000 in combined tax, penalties and interest, he or she is eligible for this Instalment Agreement, one can get 72 months of time to pay the tax amount in monthly instalments. To apply for this IA option, one needs to pay a set up fee of $31, to submit an application for long-term payment plan by phone, mail, or in-person, he or she needs to pay $107 as set up fee.

By choosing the Long-term IA plan, one will be able to pay the amount through Direct Debit Instalment Agreement (DDIA).

Note: If an individual want to choose the long-term payment plan and pay the tax amount (he or she owes) through checking or savings account, Electronic Federal Tax Payment System, check, money order or debit/credit card, one will have to pay $130 online set up fee, if one will apply for it by phone, mail, or in-person, he or she will be charged $225 as set up. 

IRS Amended Return Status

IRS Check My Refund

Click to Check Exam Updates

Tap to Check More Yojana Updates

How to apply for an IRS Payment Plan?

To apply for any IRS Instalment Agreement plan, you have to go through the step-by-step instructions available above.

• Go to the official website of the Internal Revenue Service at IRS.gov/.
• Look for an option that reads ‘Make a Payment’ and hit on it.
• Under the block of ‘Need More Time to Pay?”, you will find an option of ‘Apply for a Payment Plan’, hit on it.
• Find a tab of ‘Apply Online for a Payment Plan’, click on it.
• Sign in with your ID.me account and complete the procedure to submit an application for a short-term or long-term payment plan.

In order to get updated information regarding the IRS Payment Plan, you are requested to keep your eyes on the official website of Internal Revenue Service at IRS.gov/.

Visit JKDSD Homepage To Get Relevant Updates.