You should apply for a payment plan if. For individuals and businesses (not for payroll tax deposits). The IRS uses third-party payment processors for debit and credit card payments. It's safe and secure; your information is used only to process your payment.
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. Similarly, if you do not comply with the payments in your installment agreement and the IRS proposes to terminate the installment agreement, the collection period is suspended for 30 days. 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. 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.
Pay by direct debit (automatic monthly payments from your checking account), also known as an installment direct debit agreement (DDIA). 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. For information on payment arrangements, installment agreements, and what happens when you don't take any steps to pay, see Publication 594, IRS Collection Process (PDF). Installment agreements using direct debit and payroll deduction allow you to make timely payments automatically and reduce the possibility of default.
If the IRS system identifies you as a low-income taxpayer, the online payment agreement tool will automatically reflect the applicable rate. Finally, if you exercise your right to appeal the rejection or termination of an installment payment agreement, the collection period is suspended when the appeal is pending until the date when the appealed decision becomes final. 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. A request for an installment agreement is usually pending until it can be reviewed and an installment agreement is established, or the request is withdrawn or denied.
If the requested installment agreement is rejected, the collection period is suspended for 30 days. 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). If you're not eligible for a payment plan through the online payment agreement tool, you may still be able to pay in installments. 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).
