Requested payment plan

[bbcox3]

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.

[bluedeb · Accepted solution]

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 But if you choose to have your payments automatically withdrawn from your checking account (also known as a direct debit), you won’t receive a notice.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.

[JulieS]

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. 

[bluedeb]

@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.

[Anon151]

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]

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 

[scottratc]

My question is when I e-filed through TurboTax I said I would pay all my federal tax on 4/15 through direct debit, but then wanted to do an IRS short term installment agreement instead, which I applied for through their site (it says pending). In the meantime, it shows the pending 4/15 payment I said I would do when I e-filed and it says I can't cancel it through them and that I would have to do that through TurboTax since that was how it was submitted. I can't find a way to fix that. I am hoping that filing for the installment agreement through the IRS website will override whatever I submitted through TurboTax about paying it all on 4/15. Is that a correct assumption? Or is there a way on TurboTax to cancel that payment? I can't be the first person who has changed their mind regarding when I wanted to pay. Thanks.

[DoninGA]

@scottratc Go to this IRS website for information on cancelling a payment - https://www.irs.gov/payments/pay-taxes-by-electronic-funds-withdrawal

• Once your return is accepted, information pertaining to your payment, such as account information, payment date, or amount, cannot be changed. If changes are needed, the only option is to cancel the payment and choose another payment method.
• Call IRS e-file Payment Services 24/7 at 888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling.
• Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date.

[scottratc]

Ok. That makes it sound like they might ignore my request for an installment plan then, or it won't override that payment automatically, which is unfortunate. And maybe that is why that is all still pending. Guess I will need to call them at some point to sort it. Thanks.