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Video Guide on Installment Payment Agreements management

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Commonly Asked Questions about Installment Payment Agreements

The IRS might deny a payment plan if you have incomplete tax filings, owe for multiple periods, or lack consistent compliance with tax laws.
Individuals may be able to set up a short-term payment plan using the Online Payment Agreement (OPA) application or by calling us at 800-829-1040 (individuals).
When you request an IA using the form, generally, youll receive a response from the IRS within 30 days notifying you of whether the IA request was approved or rejected. An assigned IRS employee may also contact you and request financial records to verify the amount youve requested to pay.
IRS Definition of Installment Agreement: If youre financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement.
Individuals who owe $50,000 or less in combined income tax, penalties and interest and businesses that owe $25,000 or less in payroll tax and have filed all tax returns may qualify for an Online Payment Agreement.
The IRS defines default of an installment agreement as providing inaccurate or incomplete information, or not meeting required terms of the agreement. In this case, the IRS may propose termination of installment agreement and terminated installment agreements. Taxpayers may appeal proposed terminations.
Advantages of an IRS installment agreement. The penalties under an installment agreement are also less, which saves the debtor money. As an added bonus, the debtor can choose to pay the balance in full once it becomes more manageable, without incurring additional fees or penalties.