Irs installment agreement how many months

This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. An IRS payment plan is an agreement you make directly with the agency to pay your federal tax bill over a certain amount of time.

There are two kinds of IRS payment plans: short-term and long-term. Typically you'll make monthly payments to settle what you owe. So long as you're keeping up with that, the IRS usually won't garnish your wages or seize any bank accounts or property. You can apply online if either of these situations apply to you:. Name exactly as it appears on your most recently filed tax return.

Address from your most recently filed tax return. Financial account number, mobile phone registered in your name or an activation code received by mail takes five to 10 business days. In general, you can choose what you pay every month. That is, the IRS will ask you what you can afford. However, if you're on a long-term payment plan, you must choose a payment amount that will pay off your debt within 72 months. The cost of an IRS payment plan depends on which plan you choose, how you apply for the plan and whether you qualify for a fee reduction.

Payment plan type. Maximum you can owe to qualify. Short-term payment plan. Pay balance by:. Withdrawals from your checking account or savings account Direct Pay or. Long-term payment plan. Become a Member. Remember Me. Forgot username or password? Not a member?

Need further assistance? Please call Member Services at The IRS will be lenient if you play by the rules. By Consumer Reports. Last updated: April 16, Sharing is Nice Yes, send me a copy of this email. Send We respect your privacy.

Oops, we messed up. Try again later. When you shop through retailer links on our site, we may earn affiliate commissions. Part of the incentive for the IRS in setting up payment plans is that the taxpayer abides by the terms of this agreement.

The IRS will not set up a payment plan in an instance where they feel that the amount owed to the government could actually increase. Second, the taxpayer must be able to satisfy their liability in full including all applicable penalties and interest before the expiration of the collection expiration statute date CESD or a five-year time period 72 months or less , whichever is shorter. Finally, the taxpayer must agree to have the installment payments set up on a direct debit system so that it is automatically deducted from their checking account.

However, as I mentioned previously, setting up a streamlined payment plan will alleviate the necessity of having to fill out a collection information statement to qualify, although the IRS still may request limited financial information to ensure that you cannot pay the balance in full. In addition, if the IRS has not filed a lien against the taxpayer, they will generally agree not to file one and no independent lien determination will be made.

In closing, if you meet the requirements for one of the streamlined IRS payment plans then they are a great way to alleviate your balance due without too much effort expended. They can be set up quickly and easily by calling Automated Collections Systems or by visiting your local IRS service center.

If you have any further questions or if I can do anything else to assist you, please feel free to get in touch with me by using the contact information on my website. However, I hope by using the information contained in this article that you will be able to resolve your IRS liability.

No problem! Just enter your email address and we'll send you the PDF of this guide for free. There are numerous options available to a taxpayer trying to resolve a balance due with the IRS. One of the more prevalent options is to work out an IRS payment plan to pay down the liability in installment payments. When a taxpayer sets up a payment plan, they agree to make a specified monthly payment over a set period of time based on their ability to pay as calculated by the IRS.

In exchange for the taxpayer entering into their IRS payment plan, the IRS agrees to hold off on any adverse collection activity, including wage garnishments or bank levies, for the life of the installment agreement. Form FS is only appropriate in certain circumstances and I have some practical advice for you in filling out the form that will maximize success in obtaining a successful IRS payment plan.

Therefore, it is a good idea to obtain an updated balance of your account before attempting to set up an IRS payment plan.