Individuals: Find out where you can send balances due to your specific tax situation determines the payment options available to you. Payment options include full payment, a short-term payment plan (payment in 120 days or less) or a long-term payment plan (installment contract) (payment in more than 120 days). The user fee exemption or refund applies only to individual taxpayers whose gross income is adjusted, for example for the last year for which such information is available, at a level below or below 250% of the applicable federal poverty line (low-income taxpayers) who enter into long-term payment plans (instalment agreements) as of April 10, 2018. If you are a low-income taxpayer, the user fee will be waived if you agree to make payments by direct debit by entering into a Direct Debit Agreement (DDIA). If you are a low-income taxpayer but are unable to make payments by direct debit by entering into a DDIA, the user fee will be refunded to you after entering into the remittance agreement. If the IRS system identifies you as a low-income taxpayer, the online payment settlement tool automatically reflects the applicable fees. A reinstatement fee may apply if your plan is delayed. Penalties and interest will continue to access until your balance is paid in full. If you have received a letter of intent to terminate your payment contract, please contact us immediately. We will generally not take enforcement action: you can view the details of your current payment plan (type of agreement, due dates and amount you will have to pay) by logging into the online payment agreement tool. If the IRS approves your payment plan (remittance agreement), one of the following fees will be added to your tax bill. The changes to user fees will apply to installment contracts entered into on or after April 10, 2018.
Individuals must pay credits over $25,000 by direct debit. For businesses, balances over $10,000 must be paid by direct debit. The Office of Management and Budget has asked federal agencies to charge user fees for services such as the instalment agreement program. .
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