Will the IRS take my initial payment direct debit for my installment plan or should I mail a check?
You will receive a letter from the IRS once your payment
plan has been accepted, and your automatic debits will begin after that. Please note that this can take up to three
months to process, and penalties and interest on the unpaid balance will accrue
during this time.
While you are not
required to do so, you are able to begin sending payments before you receive
the letter (in addition to your initial payment). If you do so, make sure that your check has
your social security number and the tax year to which the payments should be
applied. It would also be a good idea to
include a short note indicating that you are making a payment toward your 2018
(or applicable year's) balance.
Note: You should pay
as much of the outstanding balance as you are able to (even if it is not
the full amount) before April 15, 2019,
to reduce the amount of interest and penalties that will be applied to your
account. You will be assessed an
underpayment penalty for any amount of unpaid tax, which will be assessed based
on the balance due as of April 15.
Additionally, the IRS will begin to assess interest on the unpaid