| An IRS installment agreement (IA) allows you to pay | | | | Those who owe more than $25k will have a more |
| your full debt in smaller monthly payments. If you owe | | | | difficult time getting approved. It is not impossible, but |
| the IRS money this is something that you may want to | | | | the IRS may ask for financial information in order to |
| consider if none of the other options are suited to your | | | | make sure that you can pay the money you will owe |
| financial situations. Of course, before you can take | | | | each month. If you owe less than $25k you will receive |
| advantage of an IA you need to go through the setup | | | | all the information you need to setup an installment |
| process with the IRS. | | | | agreement. |
| Before you do anything, it is important to note that an | | | | Upon setting up any type of tax pay off plan with the |
| monthly payment agreement with the IRS will result in | | | | IRS you will need to decide how you are going to pay. |
| paying more money over the long term. This is due to | | | | Your options include: electronic transfers direct from |
| the fact that the IRS charges interest and penalties on | | | | your bank account, personal or business check, money |
| the unpaid portion of your debt. That being said, if you | | | | order, certified funds, or payroll deductions. Make sure |
| cannot afford any other option this is something that | | | | you choose the option upfront that best suits your |
| you will simply have to deal with. | | | | situation, as well as your ability to pay in full and on |
| Additionally, there is a user fee that you must pay in | | | | time. |
| order to activate an IA. This fee is currently $52 for a | | | | To file an installment agreement the first step is to |
| direct debit installment agreement and $105 for a | | | | know what you are getting involved with. From there, if |
| non-debited type. This is a setup fee that is necessary | | | | you are ready to move forward, contact a tax |
| in order to put your payment plan in place. | | | | resolution firm if you owe the IRS over 10k to setup an |
| To get this type of plan done with the IRS you should | | | | IRS Installment Agreement. |
| contact the IRS at the number located on your bill. | | | | |