Short term payment plan questions

Forum|Forum|1 year ago
February 4, 2025
1 reply
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Hi, I have some questions on setting up a short term payment plan (180 days).

- when you set it up, does it send you a letter in the mail stating that? Or is the letter only sent for long term plan?
- can you decide how much to pay each month, or do you have to commit to one amount each month? Is it on autopay, or you do you in and pay manually?

Not A Product Question

Best answer by JohnW152

Yes, a confirmation letter should be sent to you. This is implied under How do I determine if I qualify for low income taxpayer status? and How do I manage my plan to avoid default? on the IRS' Additional information on payment plans page.

For a short-term payment plan, in which you pay your amount owed in 180 days or less, monthly payments aren't necessary. According to Short-term payment plan in the link above, your payment options include:

Paying directly from a checking or savings account
Paying electronically online or by phone using Electronic Federal Tax Payment System (EFTPS), and
Paying by check, money order or debit/credit card

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JohnW152Answer

Level 15

Paying directly from a checking or savings account
Paying electronically online or by phone using Electronic Federal Tax Payment System (EFTPS), and
Paying by check, money order or debit/credit card

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

user17581271732

Level 2

What if you cannot pay within the 180 days? Do you need to file for more time?

KarenL

Employee Tax Expert

There's a new Simple Payment plan option that allows a longer period of time to pay. You must owe the IRS no more than $50,000 in assessed taxes, penalties, and interest, and be up-to-date on filing your tax returns. Keep in mind that the longer you take to pay it off, the more interest and penalties can accrue. You can apply online here. @user17581271732

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