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Disclaimers
Disclaimers
This guide is meant to be a general resource. Quick Guide Tax is not liable for the actions of those who use it. If you would like specific guidance regarding your situation, please submit an inquiry for our Tax Debt Relief service here.
This guide is only for those who purchased it. Please do not share this link publicly.
TABLE OF CONTENTS
⭐HELPFUL TIPS BEFORE YOU GET STARTED (read this first)
⭐HELPFUL TIPS BEFORE YOU GET STARTED (read this first)
⭐Special situations that may apply to you:
⭐Special situations that may apply to you:
If you already have a payment plan from a previous year, read this first:
You are only allowed to have one payment plan (ie installment agreement) with the IRS. If you already have a payment plan set up for a prior tax year, and also cannot afford your current tax bill, then you are allowed to add the new debt to your existing payment plan. You can do this by logging into your online IRS account and revising your existing payment plan to include the additional tax debt. We can also handle this for you with our Tax Debt Relief services.
If you owe more than $50,000, read this first:
You will not be able to use this online tool to set up a payment plan. For higher balances like these, we recommend exploring tax relief alternatives. You can explore whether you’re a good fit for these options by clicking here.
If you can’t afford a monthly payment plan, read this first:
If you are unable to afford a monthly payment plan, you may qualify for some other tax debt settlement options that the IRS offers. Keep in mind that these options are only available if you are up to date on all tax filings and quarterly estimated tax payments. You can explore whether you’re a good fit for these options by clicking here.
⭐Fees and interest associated with payment plans:
⭐Fees and interest associated with payment plans:
What late payment interest and penalties do I have if I set up a payment plan?
The failure to pay penalty is .25% per month if you have a payment plan (without a payment plan it's .5%)
Interest is the same whether or not you have a payment plan. The rates change every quarter. You can calculate estimated interest here.
Are there any payment plan set up fees if I set it up online myself?
It depends on the type of plan you set up:
90 or 180 day plans are free
Over 6 month plans cost $31 if you apply online and sign up for auto-withdrawal from a bank account
STEP BY STEP GUIDE
STEP BY STEP GUIDE
Step 1
Step 1
Click here and select “Apply/Revise as Individual.”
Step 2
Step 2
Log into (or create) your online IRS account
Step 3
Step 3
Type your federal tax balance due.
Step 4
Step 4
Select your preferred payment plan type (descriptions below)
The "90 day" option does not include automatic monthly payments. You are simply telling the IRS that you will pay your taxes manually online within 90 days.
Click here for a guide on how to make your manual payments on directpay.irs.gov (For step 2, select "Payment plan/installment agreement," "Income tax- Form 1040," and the tax year you want the payments applied to.)
The "180 day" option does not include automatic monthly payments. You are simply telling the IRS that you will pay your taxes manually online within 180 days.
Click here for a guide on how to make your manual payments on directpay.irs.gov (For step 2, select "Payment plan/installment agreement," "Income tax- Form 1040," and the tax year you want the payments applied to.)
The "monthly" payment option does include automatic monthly payments and allows you up to 6 years (72 months) to pay off the debt.
Final Steps for Short Term Plans (90 or 180 days)
Final Steps for Short Term Plans (90 or 180 days)
Read and sign the terms and conditions. Click continue and follow the remaining prompts to finalize.
Remember that these plans do not include automatic monthly payments. You are simply telling the IRS that you will pay your taxes manually online within 90 or 180 days.
Click here for a guide on how to make your manual payments on directpay.irs.gov (For step 2, select "Payment plan/installment agreement," "Income tax- Form 1040," and the tax year you want the payments applied to.)
Final Steps for Long Term Plans (up to 6 years)
Final Steps for Long Term Plans (up to 6 years)
On the Request Page:
Type your preferred monthly payment amount (you can use their Payment Estimator button to help you determine a minimum payment amount)
Select your preferred monthly payment date (which day of the month you would like the payment to be withdrawn from your bank account)
Select “Direct Debit Installment”
Click continue
On the Direct Debit Page:
Provide your bank account information, same and social security number.
Click continue and follow the remaining prompts to finalize.
HOW TO MONITOR YOUR PLAN AND MAKE ADDITIONAL PAYMENTS
HOW TO MONITOR YOUR PLAN AND MAKE ADDITIONAL PAYMENTS
STEP 1
STEP 1
Click on Account Balance at the top.
STEP 2
STEP 2
See each tax year and the remaining balance on this page.
You can also make an additional payment towards your balance anytime by clicking on the “Make a Payment” button on the bottom left. Make sure you apply the payment to your “installment agreement,” “form 1040 income tax”, and select the correct tax year.
HOW TO MAKE REVISIONS TO YOUR PLAN
HOW TO MAKE REVISIONS TO YOUR PLAN
Log in to the Online Payment Agreement tool using the Apply/Revise button here.
On the first page, you can revise your current plan type, payment date, and amount. Then submit your changes.
If your new monthly payment amount does not meet the requirements, you will be prompted to revise the payment amount.
To convert your current agreement to a Direct Debit agreement, or to make changes to the bank account associated with your existing Direct Debit agreement, enter your bank routing and account number.
If your plan has lapsed through default and is being reinstated, you may incur a reinstatement fee.
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