The Ins and Outs of the IRS Installment Agreement
DoNotPay can tell you how to create any legal document without a lawyer. We will also show you everything you should know about the IRS installment agreement.
What Is the IRS Installment Agreement?
An IRS installment agreement is also known as a long-term payment plan. This is an agreement with the Internal Revenue Service that lets you make late tax payments during a prolonged time frame. You should ask for a payment plan if you think you can pay all of the taxes you owe in full during the set period.
What happens if you don’t pay your taxes on time? The IRS might file the:
What Are the Payment Agreement Costs and Fees?
If the IRS approves your payment plan, you can pay your debt in monthly installments. You will have 120 days to pay out what you owe. Take a look at the table below to understand your options and the cost of each:
Direct Debit Installment
|Pay monthly from your checking account||
|You can pay monthly via:
Fees apply when paying by card. Setup fees are waived for people with low income if they apply online, by phone, or in person with the Direct Debit Installment option. Individuals with low income who apply the same way with any of the alternative methods have to pay a $43 setup fee that can be reimbursed if they meet certain requirements.
Individuals with balances over $25,000 and businesses with balances over $10,000 must pay by Direct Debit.
Types of IRS Installment Agreements—What Are the Requirements?
You can choose between four types of IRS installment agreements. Take a look at the table below for more details:
|Type of Installment Agreement||You Need To:|
Guaranteed Installment Agreement
Streamlined Installment Agreement
Non-Streamlined Installment Agreement
Partial Payment Installment Agreement
What if You Can’t Follow the Installment Agreement?
In case you experience a financial setback and can't pay the expenses after you were approved for an installment agreement, you need to let the IRS know. There is a possibility of lowering your monthly payments, but only if you can provide adequate proof of your financial hardships.
Can the IRS Revoke the Installment Agreement?
The IRS may revoke an installment arrangement if the taxpayer:
- Misses a payment
- Is paying under a partial payment installment agreement and their financial position changes
- Didn’t provide correct information on the Form 433-F
- Doesn’t file a tax return or pay taxes after the agreement is entered into
DoNotPay Can Help You Create a Legal Document of Your Choice
Handling legal documents is not simple if you don’t know laws and regulations by heart. This is when people usually turn to lawyers for help, but what if you can’t afford one? DoNotPay is your solution.
We may not be able to help you with creating an installment agreement, but we can generate numerous other legal documents for you. Follow these simple instructions:
- Open DoNotPay in your web browser
- Enter the name of the document
- Provide us with all the necessary info, such as your name and address
You may still have to sign and notarize the document after we create one for you, both of which you can do using our AI-driven app! As soon as you start using it, you won’t have to rely on contract templates that are mostly generic and outdated.
What Are the Documents DoNotPay Can Generate for You?
DoNotPay is at your service for generating various types of contracts. Take a look at the list below to see what we offer:
- Non-Disclosure Agreement
- Promissory Note
- General Business Contract
- Residential Lease Agreement
- Estoppel Certificate
- Non-Compete Agreement
- Quitclaim Deed
- Intent To Purchase Real Estate
- General Affidavit
- Independent Contractor Agreement
- Prenuptial Agreement
- Bill of Sale
- Parenting Plan
- LLC Operating Rules Document
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