IRS Installment Agreement (IA)

IRS- 1-800-829-1040 (I) / 1-800-829-4933 (B)

Request to pay in instalments by attaching form 9465 to your return or
any notices you receive from IRS.

Internal Revenue Service
PO BOX 219236, STOP 5050 Kansas City, MO 64121-9236

IRS. GOV/PAYMENTS 

To Qualify? If you are an individual, you may qualify to apply online if: 

1. Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties, and interest, and filed all required returns.
2. Short-term payment plan: You owe less than $100,000 in combined tax, penalties, and interest.
3. Taxpayer must have filed all back returns ( 6 years back)

What are the relevant forms? 

Form 9465 Installment Agreement Request.
Form 8822- Change of Address.
Form 13844- Application for low-income taxpayer status. Reduced User Fee.

Who do we contact? 

Online services account (NYS)
If greater than $20,000, or that requires more than 36 months, you need to call (518) -457-5434.

What’s the relief acquired? 

Affordable payment plans. Stops any collection activities. When a client requests a payment plan aka (IA) Installment Agreement, with certain exceptions, the IRS is generally prohibited from levying and the IRS time to collect is suspended or prolonged while the Installment Agreement is pending.

Is there a completion status? What happens at the end?

There are 36-month plans, but most are 5-7 years. At the end, the balance will be paid, or the statute of limitations runs out, whichever comes first.

Under an Installment Agreement, any outstanding debt will continue to accrue penalties and interest for unpaid taxes on a monthly basis. 7-10% Annually.

Only one installment agreement can be in place at a time.

What happens if the client’s situation gets worse during enrolment? 

Just because you agree to pay the liability in full, including penalties and interest, under this type of installment agreement, you are not precluded from seeking other types of relief, including penalty abatement or an offer in compromise. 

THE U.S. STATE DEPARTMENT WILL NOT ISSUE PASSPORTS TO TAXPAYERS AFTER RECEIVING THEIR DELINQUENT DEBT CERTIFICATION FROM THE IRS.

What happens if the client’s situation gets better during enrollment? 

Just because you agree to pay the liability in full, including penalties and interest, under this type of installment agreement, you are not precluded from seeking other types of relief, including penalty abatement or an offer in compromise. 

10 YEAR STATUTE OF LIMITATIONS WITH THE IRS.

5 Different options for Installment Agreements.

1. I owe $20,000 or less and require no more than 36 scheduled monthly payments. 518- 457-5434. Can create an online services account. (NYS) 
2. Between $25,00 – $50,000, you can enter into a streamlined direct debit installment agreement, 
3. Between $50,000 – $100,000, in this case the application terms will be stricter and not easily attained. A revenue officer is within his or her rights to demand the filing of form 433 A/B. Last for 5-7 years 
4. $100,000 or more. IRS Will demand 433A/B. 
5. Partial Payment Installment Agreements. (PPIA) Does not have the present ability to make monthly payments large enough to pay tax liability in full over time under the traditional installment agreement. Under PPIA, you can make smaller, even token payments, to the IRS as a sign of good faith.

Browser Requirements for Online Payment Agreement Tool.

• Google hrome 
• Internet Explorer of Microsoft Edge 
• Mozilla Firefox 
• Safari

What are called “session cookies” need to be enabled to accept IRS Privacy Policy.

Payment Methods:

SHORT-TERM

• Direct Pay 
• Electronic Federal Tax Payment System (EFTPS), REQUIRES ENROLLMENT PROCESS. 
• Pay by check, money order, debit/credit card. When paying by check, include your name, address, SSN, daytime phone number, tax year, and return type on your payment.

LONG-TERM
Direct Debit Installment Agreement (DDIA)

• Apply online: $31 set-up Fee.
• Apply by phone, mail, or in person, $107 Set-up fee.
• Lowe-income: apply online, by phone, or in person: set up fee waived.
• Plus, accrued interest: and penalties until the balance is paid in full.