After thousands of IRS customers came to GetHuman in search of an answer to this problem (and many others), we decided it was time to publish instructions. So we worked out How do I cancel an IRS payment plan? to try to help. According to other users, carrying out these steps takes time, including time spent working through each step and contacting the IRS if necessary. Best of luck and let us know if you've successfully resolved your problem with the guidance on this page.
After an installment agreement is approved, you can submit a request to modify or terminate an installment agreement. All payments received under the installment agreement will be applied to your account in the best interest of the United States. If you can pay the full amount you owe within 120 days, you can avoid paying the fee to set up an installment agreement. If the IRS doesn't say that you qualify for the reduced rate, you can request that the IRS consider you as low-income by using Form 13844, Request for Reduced User Fee for Installment Agreements.
For installment agreements entered into by taxpayers with adjusted gross income, for the most recent available tax year, equal to or less than 250% of the federal poverty guidelines, the IRS will waive or refund fees to users if certain conditions are met. Low-income taxpayers who cannot make electronic payments through a DDIA by providing their information on lines 13a and 13b are eligible to receive a refund of the user fees under their installment agreement. Receiving this notice from the federal tax agency means that you are in danger of losing your IRS installment agreement. A management conference is not always necessary to request a CAP hearing involving a terminated installment agreement.
During the past 5 tax years, you (and your spouse if you file a joint return) have timely filed all income tax returns and paid any income taxes due, and have not entered into an installment agreement for the payment of income tax;. For more information, see Requesting an installment agreement and other payment plans online, above. If you are a low-income taxpayer and agree to make electronic payments through a debit instrument by entering into an installment direct debit agreement (DDIA), the IRS will not charge the user fees of the installment agreement. You want to apply for an online payment plan, including an installment agreement (see Requesting an installment agreement and other payment plans online, below); or.
If you are a low-income taxpayer, see Reduced User Fee of the Installment Agreement, below, for more information. Taxpayers who are currently unable to comply with the terms of an installment agreement, including an installment agreement with direct debit, can suspend payments during this period if they prefer. This user fee applies only if the reinstatement or restructuring of the installment payment agreement was established through a takeover bid.