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posted Jun 6, 2019 5:18:22 AM

I currently have an IRS monthly payment plan of $200 a month. My remaining balance will be a little over $350. Will I be penalized to pay off early?

I was told by the IRS that even if I pay off my remaining balance early, they will still deduct $200 a month from my account. How is this true?

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1 Best answer
Level 3
Jun 6, 2019 5:18:23 AM

You will not be penalized for paying early. It depends on when you pay it, but the IRS will most likely take 1 extra payment, then send you back a check. I recently went through this process. It will all work out in the end. You have to make the payment about 10 days before the due date in order to stop that last payment from going through.

2 Replies
Level 3
Jun 6, 2019 5:18:23 AM

You will not be penalized for paying early. It depends on when you pay it, but the IRS will most likely take 1 extra payment, then send you back a check. I recently went through this process. It will all work out in the end. You have to make the payment about 10 days before the due date in order to stop that last payment from going through.

Not applicable
Jun 6, 2019 5:18:25 AM

You can also go IRS website and convert your existing agreement to a direct debit agreement. <a rel="nofollow" target="_blank" href="https://www.irs.gov/individuals/reviewing-and-changing-your-payment-plan">https://www.irs.gov/individuals/reviewing-and-changing-your-payment-plan</a>