I set up an IRS installment plan to pay off taxes. Is there a penalty if I don’t adhere to my payment plan and pay off debt early?
You can avoid the fee by paying the full amount within 120 days. Apply online to specify this option to pay taxes. If you owe more than $50,000, call the IRS at 800-829-1040 to discuss your tax debt options.
If you can’t pay taxes in full amount within 120 days, you’ll have to pay one of these fees for setting up the agreement:
- $52 for a direct debit agreement
- $120 for a standard agreement or payroll deduction agreement
- $43 if your income is below a certain level
Fill out Form 13844 to apply for the reduced user fee.
Federal and state tax rates are constantly in a state of change. In case you missed important updates within your state, review the upcoming changes for 2018 and beyond.
Learn more about IRS Letter 4552C and how to handle an inquiry of your business' income with help from the tax experts at H&R Block.
Learn more about letter 2050, why you received it, and how to handle an IRS bill for unpaid taxes with help from the tax experts at H&R Block.
Learn about the two types of tax identity theft: refund fraud and employment-related theft. Get the IRS definition and read more insight from H&R Block.