If, in the last 12 months, you have fallen behind with a instalment payment contract, the amount you owe is more than $25,000 but not more than $50,000, and the amount on line 11a (11b, if applicable) is less than the amount on line 10, you must complete Part II on page 2 of Form 9465. Therefore, if you need a payment plan or instalment payment agreement to pay your credit to the IRS, check out IRS.gov/OPA to get started. Businesses that owe $25,000 or less in the current and previous calendar year and can pay what they owe in 24 monthly payments or less, also qualify for using the online application. You will be charged interest and a late payment penalty for each tax that is not paid by the due date, even if your request for payment in instalments is accepted. Interest and any penalties are calculated until the balance is paid in full. For more information, see Theme 653, IRS Communications and Invoices, Penalties, and Interest Charges IRS.gov/TaxTopics/TC653. To limit interest and penalties, file your tax return on time and pay as much tax as possible with your return or termination. All payments received under the instalment payment agreement will be transferred to your account in the best interest of the United States. If the IRS approves your payment plan (instalment payment agreement), one of the following fees will be added to your tax bill. Changes to user charges apply to time contracts entered into on or after April 10, 2018. For individuals, credits over $25,000 must be paid by direct debit. For businesses, assets over $10,000 must be paid by direct debit.
By accepting your request, we agree that you pay the tax you owed in monthly instalments, instead of immediately paying the full amount. In return, you agree to make your monthly payments on time. You also agree to fulfill all your future tax obligations. This means that you must have a withholding tax or tax payments deemed sufficient for your tax liability for future years to be fully paid if you file your return on time. Your application for a instalment payment agreement is rejected if no necessary tax return has been filed….