If I apply for an installment payment plan (9465) thru Turbo Tax with direct debit. Will the IRS fee be $31 or $225?

[lmertins]

If I use Turbo Tax to apply for an installment plan (9465) with direct debit from my account how much will the IRS setup fee be?

[Melaine · Accepted solution]

The IRS fee for setting up an installment payment plan is $107 if you request direct debit or $225 for payroll deduction and it is usually taken from your first payment.  If you go online to the IRS site at Online payment agreement application and complete the application, you will only pay $31.  If you would like to complete that option and bypass the installment plan set up in TurboTax, select that you will pay the tax liability by check.  You will be able to still e-file and set up the arrangements to pay on the IRS website.

The IRS charges a user fee of $225 when you enter into a standard installment agreement or a payroll deduction agreement. If you enter a standard installment agreement and choose to pay via direct debit from your bank account, the user fee is $107. If you use the OPA application to request an installment agreement, the user fee is $149. If you use the OPA application to request an installment agreement and choose to pay via direct debit, the user fee is $31 for all taxpayers regardless of income levels. Note: The user fee for restructuring or reinstating an established installment agreement is $89 regardless of method of payment. (IRS Tax Topic 202)