Requested payment plan

8 replies
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I filed taxes already and requested payment plan. Ive never had to do this until now. Will I get a letter from IRS or any kind of notification from Turbo Tax? Im not sure what to do next. My taxes have been filed and accepted.

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bluedebAnswer

Alumni - Champ

The IRS will send you a notice regarding your agreement within 30 days or more.

How the Installment Agreement Works

We will usually let you know within 30 days after we receive your request whether it is approved or denied. However, if this request is for tax due on a return you filed after March 31, it may take us longer than 30 days to reply. If we approve your request, we will send you a notice detailing the terms of your agreement and requesting a user fee.

Each month, we will send you a notice showing the remaining amount you owe, and the due date and amount of your next payment. But if you choose to have your payments automatically withdrawn from your checking account (also known as a direct debit), you won’t receive a notice. Your checking account statement is your record of payment. We will send you an annual statement showing the amount you owed at the beginning of the year, all payments made during the year, and the amount you owe at the end of the year.

By approving your request, we agree to let you pay the tax you owe in monthly installments instead of immediately paying the amount in full. In return, you agree to make your monthly payments on time. You also agree to meet all your future tax obligations. This means that you must have enough withholding or estimated tax payments so that your tax obligation for future years is paid in full when you timely file your return. Your request for an installment agreement will be denied if any required tax returns haven’t been filed. Any refund will be applied against the amount you owe. If your refund is applied to your balance, you’re still required to make your regular monthly installment payment.

bluedeb

Answer

Alumni - Champ

The IRS will send you a notice regarding your agreement within 30 days or more.

How the Installment Agreement Works

We will usually let you know within 30 days after we receive your request whether it is approved or denied. However, if this request is for tax due on a return you filed after March 31, it may take us longer than 30 days to reply. If we approve your request, we will send you a notice detailing the terms of your agreement and requesting a user fee.

Each month, we will send you a notice showing the remaining amount you owe, and the due date and amount of your next payment. But if you choose to have your payments automatically withdrawn from your checking account (also known as a direct debit), you won’t receive a notice. Your checking account statement is your record of payment. We will send you an annual statement showing the amount you owed at the beginning of the year, all payments made during the year, and the amount you owe at the end of the year.

By approving your request, we agree to let you pay the tax you owe in monthly installments instead of immediately paying the amount in full. In return, you agree to make your monthly payments on time. You also agree to meet all your future tax obligations. This means that you must have enough withholding or estimated tax payments so that your tax obligation for future years is paid in full when you timely file your return. Your request for an installment agreement will be denied if any required tax returns haven’t been filed. Any refund will be applied against the amount you owe. If your refund is applied to your balance, you’re still required to make your regular monthly installment payment.

J

JulieS

Alumni - Intuit

The first thing to do now is to make your first payment, unless you already arranged a direct debit when you filed your return.

You will receive a letter from the IRS about your installment plan, but if you authorized monthly payments from your bank account or bankcard, this will happen according to the schedule you agreed.

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A

Anon151

Level 2

Hi,

This is also my first time owing taxes. I filed with Turbo Tax and completed all information to pay direct debit, but I got confused w/ directions and ended up also setting up an installment plan through an IRS account. I'm not sure if I'm doing twice: one through Turbo Tax and one through the IRS. Will the IRS know that I may have paid both times today (4/18)? Hope this makes sense and you can answer my question.

AmyC

Alumni - Intuit

Best advice, call the IRS payment department at 800-316-6541.

My guess: If you filed the return for a direct debit, the IRS will take the money. If you also paid online, the IRS may determine the bill is paid and may not take the debit. If you signed up for a payment plan, you should cancel it.

@Anon151

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bluedeb

Alumni - Champ

@bbcox3 The program will suggest you make an initial payment now, you don’t have to pay now. It is suggested to pay something now to lower what you owe and reduce the interest. It is up to you if you want to make a payment now.