For instalment payment agreements entered into by taxpayers whose adjusted gross income for the last taxation year is available, at or below 250% of the federal poverty guidelines, the IRS waives or reimburses user fees if certain conditions are met. For more information, see Waiver of user fees and subsequent refunds. You can view the details of your current payment schedule (type of agreement, due dates, and amount you need to pay) by logging into the online payment agreement tool. If you do not select the check box on line 13c (and do not specify the information on lines 13a and 13b), indicate that you can but cannot make electronic payments by configuring a DDIA. Therefore, your user fee is not refundable after the conclusion of your instalment payment contract. Your specific tax situation determines the payment options available to you. Payment options include full payment, a short-term payment plan (payment in 120 days or less) or a long-term payment plan (installment contract) (payment in more than 120 days). Taxpayers who suspended their instalment payments between April 1 and July 15, 2020 must resume their payments before their first due date after July 15. As part of the People First initiative, the IRS did not reach any agreements, but interest was incurred and the balance remained. .
If you make your payments by direct debit, you can ensure that your payments are made on time and that you are not in default with this instalment payment agreement. If you are a low-income taxpayer and agree to make payments by direct debit (from a checking account), you are entitled to an exemption from the payment usage fee. A low-income taxpayer who is unable to make electronic payments using a debit instrument by entering into a DDIA will be entitled to a refund of the reduced user fee of $43 at the end of the instalment payment agreement. See 13c, further on, for more details. The Office of Management and Budget has asked federal agencies to charge user fees for services such as the Installment Agreement Program. The IRS uses user fees to cover the cost of processing instalment payment agreements. For instalment payment agreements concluded at or after 10. April 2018 by low-income taxpayers, who will be defined later, the IRS waives user fees or reimburses them if certain conditions are met.
If you are a low-income taxpayer and agree to make electronic payments using a debit instrument by entering into a direct debit rate agreement (DDIA), the IRS waives the user fee for the instalment payment agreement. See lines 13a, 13b and 13c, below, for more details. If you are a low-income taxpayer and cannot make electronic payments using a debit instrument by completing a DDIA, the IRS will refund you the user fee you paid for the instalment payment agreement after entering into the instalment payment agreement. For more information, see line 13c below. A payment plan is an agreement with the IRS to pay the taxes you owe within a longer period of time. You should apply for a payment plan if you believe you can pay your taxes in full within the extended period. If you are eligible for a short-term payment plan, you will not be liable for a user fee. Failure to pay your taxes when they are due may result in the filing of a federal tax lien notice and/or IRS levy action. See Publication 594, The IRS Collection Process PDF. If the total amount you owe must not exceed $50,000 (including amounts you owe from previous years), you do not need to file Form 9465. You can request a instalment payment agreement online for a reduced fee. For more information, see Apply online for a instalment payment contract and other payment plans later.
Low-income taxpayers who complete lines 13a and 13b will receive an exemption from their remittance agreement fees. For more information, see User Fee Waiver and Refunds above. We`ve added text that specifies when the IRS can terminate the instalment payment agreement. See What happens if the taxpayer does not comply with the terms of the payment agreement made later. .