I am a student and I am self employed, I work in the rideshare business part time. I filed my taxes for 2017, and I had to owe them a around 1600$. I didn’t have the money to pay the balance in full so I called the IRS and ended up setting a payment plan. The IRS officer told me I’d receive a notice in the mail within a week or two, about installment fee of $225. And after that I’d have to pay the desired amount every month. But I noticed that the IRS charged my bank account of the full amount I owe on April 16. I didn’t even have that much in my account and my bank account is currently negative. I just wanted to know does the IRS have any right to do this? Even after I set up a payment plan.
Hi there,
While we don't have insights into what may be going on with your exact situation here's a link from the IRS website that should be able to provide some more information regarding IRS payment plans.
https://www.irs.gov/payments/payment-plans-installment-agreements
Hope that helps!