An installment agreement is a payment plan between a taxpayer and IRS to pay down debt in smaller amounts over time. According to the IRS, here is what they are proposing:
- Regular installment agreement: $225
- Regular direct debit installment agreement: $107
- Online payment agreement: $149
- Direct debit online payment agreement: $31
- Restructured or reinstated installment agreement: $89
- Low-income rate: $43
These rates would increase for people who would enter an installment agreement via phone, mail, or by filing Form 9465. However, the fee would be decreased for those paying with a direct debit from their bank account.
In a press release, the IRS states, “The IRS intends to continue providing reduced-fee or no-cost services to low-income taxpayers. For that reason, the IRS will continue subsidizing part of the cost of providing installment agreements to low-income taxpayers.”
Contact our New England tax resolution experts to see if an installment agreement is the solution for you. We solve tax problems for individuals and small businesses throughout New England.