The information on this site is to be used for informational purposes only and is not intended or implied to be a substitute for professional CPA or accountant advice. It is important to visit a highly specialized CPA firm in New York with top rated, best in class NYC accountants regarding creative ideas customized to your specific needs. Visit a leading Accounting firm in NYC and Queens, NY Miller & Company LLP. We are taking an exceptional individual care of each client.

Paying the IRS with an Installment Agreement

When you pay your taxes on time, you avoid penalties and fees that the Internal Revenue Service (IRS) most certainly will slap on you. But even if you’ve implemented a plan to have the funds available by the April 15 due date, sometimes unexpected expenses come up that are just unavoidable, leaving you unable to pay your income taxes on time.

When that happens, you need to bite the bullet and accept the consequences — which may turn out to be an IRS installment agreement. Then you can pay the service until you’ve settled your debt. Charges you most likely incur include:

Setting up an IRS Installment Agreement

When it’s determined that you owe taxes to the IRS, you have a few options:

Individuals can set up a short-term IRS payment arrangement online if you owe the government less than $100,000, which includes the tax, plus penalties and interest. You can make the arrangements for an IRS installment agreement online if your total debt is $50,000 or less.

If you’re requesting more time to pay your business taxes, you can set up a long-term IRS installment agreement payment plan online when your balance is $25,000 or less. Independent contractors and solo proprietors file as individuals.

If you owe more than the maximum allowed for an online payment agreement (OPA) or otherwise aren’t eligible to apply online, you still may be eligible for an IRS installment agreement. You just have to fill out the paper forms, attach documentation and mail it in. Setup fees may be higher than if you rely on electronic applications for extended payment plans.

If you want professional assistance in setting up IRS installment agreement our CPA professionals at Sarasota accountant office can help you with all paperwork.

How It Works

Once you’ve filed an application for an IRS installment agreement payment plan, they generally let you know within 30 days whether you’ve been approved or not. But if you wait until after March 31 to make the request for taxes due on April 15, you may have to wait longer for an answer. Once you’re approved, you’ll get a notice with the details of how much you need to pay each month, along with the due date. You’ll also get your bill for the user fee.

If you’ve set up a non-direct payment agreement, you get a notice each month that shows the remaining balance, as well as the date and amount of your next due payment. You don’t get notices for automatic payments, also called direct payments. Either way, every year, you get a statement showing the payments you’ve made.

Making Changes During Your Repayment Period

The IRS isn’t completely heartless; they allow for changes to be made during the life of your IRS installment agreement. But you better believe you’ll pay for them. For an $89 fee, you can change the amount of your monthly payment, the due date or make a conversion to a direct or non-direct payment.

If you’ve let your IRS installment payments lapse, you can apply to have your agreement reinstated for a larger fee. If you request a smaller monthly payment, note that it may be denied. An online prompt tells you when you reached an acceptable threshold. You can continue to ask that the changes be initiated.

Caveats to the IRS Installment Agreement Payment Plan

When you make a request for an IRS installment agreement on time and in good faith — and you meet the financial requirements — you have a good chance of getting your request approved. You can even pay off the balance ahead of time with no penalty, which also saves money in accrued interest.

A few warnings before you take the steps and apply for the payment plan:

If you stop making monthly payments, you’re subject to possible:

Avoid paying more than your fair share and do your best to pay your taxes on time. With the assistance of a qualified accountant experienced in tax law and IRS payment arrangements, you’ll know what to do every step of the way. Your tax accountant can even file the necessary paperwork for you.

If you’ve reached the point where you need to seek an IRS installment agreement payment plan, talk to your accountant about the appropriate tax withholdings or quarterly payments you need to make to avoid it in the future. In New York City, Sarasota, FL and Washington, DC, rely on the expertise of seasoned tax accountants who keep up with all the current tax laws at Miller & Company, LLP.

Queens CPA Firm
Miller & Company LLP
Paul Miller, CPA (Queens Certified Public Accountants)
141-07 20th Ave, Suite 101
Whitestone, NY 11357

(718) 767-0737

Manhattan CPA Firm
Miller & Company LLP
Paul Miller, CPA (NYC Certified Public Accountants)
274 Madison Avenue, Suite 402
New York, NY 10016

(646) 865-1444
Stay Connected

Creative advice and outstanding performance

Expect a thorough commitment to excellence. Creative advice and outstanding performance — merged with relentless dedication and vigilant customer service — mean that your CPA responds quickly to requests and questions. Accounting experts are just a phone call away.

A full-service consulting and accounting firm in New York

“Nothing less than the best.” That’s what current and former clients say about Miller & Company. It’s that reputation for excellence that drives successful individuals and businesses to work with this team.

The financial expertise you’ll find at Miller & Company is unparalleled in the Manhattan and New York City areas. Your personal CPA gets to know who you are — identifying the objectives you have and the challenges you face. Then, using a wide range of innovative business strategies, you’ll receive breakthrough solutions that no other accountants thought possible.

Professionalism is more than certifications and degrees

Professionalism is more than certifications and degrees -- all of which you’ll find at Miller & Company. Professionalism at Miller & Company means you’re always treated with the respect you deserve. Professional CPAs embrace their commitment.

When you contact this New York City accounting team, you receive the most up-to-date information, the most innovative financial concepts and the best possible solutions. You get accountants honesty and integrity necessary to earn your trust. Your satisfaction is paramount.