You should apply for a payment plan if. Short-term payment planYou can pay your tax debt within 180 days. You can apply for a short-term payment plan by phone, mail, in person, or online. If you are a low-income taxpayer but are unable to make electronic debit payments when you sign up for a DDIA, your user fee will be refunded once you complete the installment agreement.
A request for an installment agreement is usually pending until it is reviewed and established, or you withdraw the request or the IRS rejects it. You can request a routine installment agreement by mail or by calling the IRS, but you can't apply online. As part of its Fresh Start program, the IRS recently adopted new rules that make it easier to obtain an installment agreement. If the IRS determines that you cannot pay any of your tax debts due to financial difficulties, the IRS may temporarily delay the collection by stating that your account is currently not collectible until your financial situation improves.
If you're not eligible for a payment plan through the online payment agreement tool, you may still be able to pay in installments. If you are a low-income taxpayer, you will not be charged the user fee if you agree to make direct debit payments through an installment direct debit agreement (DDIA). Submit your request online through the online payment agreement tool or by phone or by mail by submitting Form 9465, Request for an Installment Agreement. With certain exceptions, the IRS is generally prohibited from collecting taxes and the IRS's time to collect is suspended or extended while an installment agreement is pending.
Installment direct debit agreements have a lower user fee compared to other installment agreements, and the user fee may not apply or be reimbursed to low-income taxpayers. File all required tax returns on time and pay all taxes in full and on time (contact the IRS to change your current agreement if you are unable to do so). If you are unable to make the required minimum payment amount, you will receive instructions to complete Form 9465 Request for Installment Agreement in PDF and Form 433-F Collection Information Statement in PDF. Finally, if you exercise your right to appeal the rejection or termination of an installment payment agreement, the collection period is suspended from the time the appeal is pending until the date the appealed decision becomes final.
Or, ask a tax professional to determine which payment agreement may be best for you and even establish an agreement with the IRS for you. Installment agreements using direct debit and payroll deduction allow you to make timely payments automatically and reduce the possibility of default. Applicants must submit the form to the IRS within 30 days from the date of their letter of acceptance of the installment agreement to ask the IRS to reconsider their status.