Your IRS payment plan balance results from late settlements or failure to file tax reports. It worsens as penalties and interests pile up. Keep your balance in check. Learn how to check the status of your payment plan and other important information about IRS payments with our handy tax guide.
Everything You Need to Know About Your IRS Payment Plan Balance
In this article:
- How Do I Pay a Tax Deficiency?
- What Do I Need to Apply for a Payment Plan?
- Can I Apply for an IRS Payment Plan Online?
- What Is My IRS Payment Plan Balance?
- How Do I Check My IRS Payment Plan Balance?
- How Do I Make an Inquiry About an IRS Payment Plan Balance?
- Can I Change My Payment Plan?
How Do I Pay a Tax Deficiency?
You can try to argue, compromise, or declare bankruptcy, but it is advisable to apply for a payment plan. With this plan, you can pay back taxes, penalties, and interest based on a short- or long-term agreement.
When opting for a short-term plan, you do not have to pay a setup fee. But you must settle your debt within 120 days. For long-term plans, you can finish making IRS payments past 120 days. However, there is a $31 online setup fee and a $109 fee if you apply by phone, mail, or in person. If you do not pay through automatic bank withdrawals and use a different method, like a credit card, the setup fee increases to $149 for online applications and $225 for phone, mail, or in-person applications.
What Do I Need to Apply for a Payment Plan?
First, you need to be updated with your tax returns. If you have missed filing taxes in the past, you would not qualify. You will also need to supply the Internal Revenue Service (IRS) with the following information:
- Valid e-mail address
- Most recent address
- Date of birth
- Filing status
- Social Security Number and Individual Tax ID Number
Can I Apply for an IRS Payment Plan Online?
The Internal Revenue Service (IRS) crafted an online tool for payment plans. You cannot apply for a short-term agreement online if you owe more than $100,000. Similarly, if you owe more than $50,000, you do not qualify for a long-term plan. If you cannot apply online, you can mail or personally submit Form 9465, the Installment Agreement Request, to any IRS office.
What Is My IRS Payment Plan Balance?
This is how much you owe the IRS. For the federal government to approve an installment agreement, you must show you can pay off this entire amount by the end of a specified period. If not, your penalties and accumulated interest will add up even more.
How Do I Check My IRS Payment Plan Balance?
There is another online method to check your IRS payment plan balance and other tax details. Log into this app on the IRS website to see your total debt, balance for each tax year, and the last 18 months of your payment history. However, the service only works at certain hours in the day, and it takes a few weeks to register new payments.
How Do I Make an Inquiry About an IRS Payment Plan Balance?
If you need more details about your taxes, you can submit Form 4506-T or the Request for a Transcript of Tax Return. This will give you a more comprehensive overview of your IRS payment plan balance. You can also request for your account transcript for the latest financial year on the IRS website. If you have further questions, call their toll-free number at 800-829-1040 for telephone assistance.
Can I Change My Payment Plan?
You can use the aforementioned online tool to both view your account and make changes to your payment plan. Use this to revise your monthly remittance and due date. You can also switch to a direct debit payment agreement, and renew your plan if it had gone into default. If the online tool does not accept the new monthly payment, it will show you how to send Form 433-F or the Financial Information Statement to the IRS. This will expedite the process of revising your collection dues.
Know more about your IRS payment plan options and balance. Check out the video below from the Gregory Law Group!
The IRS payment plan balance will help determine how soon you can be debt-free. It may seem intimidating at first, but you have online and offline tools you can maximize to make payments easier. With the right installment plan, you can pay off all your dues in no time!
Do you have any questions about checking your IRS payment plan balance? Or experiences you want to share with us when handling your taxes? Leave them in the comments section below!
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