If your balance due does not exceed $50,000, you can also apply for an online payment contract instead of submitting Form 9465-FS. To do this, go to IRS.gov and click “More… under tools. Interest will also be charged and a late penalty may be imposed for each tax that is not paid until the due date, even if your request for payment is accepted in increments. Interest and all applicable penalties are collected until the balance is paid in full. Current interest rates are 3% per year and you will also be charged a late payment of 1/4% per month. Warning: A notice on the Federal Tax Link can be filed to protect the interests of the government until you pay the full amount. The IRS recently relaxed its rules on the payment of smaller tax debts. The revised procedures now allow tax payers to pay their tax obligations for up to 72 months. The new procedures also increase the maximum amount subject to streamlined agreements from $25,000 to $50,000.

You can apply for a payment agreement online, by phone or via various IRS forms. Your request for staggered payment cannot be denied if the debt tax you submitted is not more than $10,000 and the following three points apply. Your specific tax situation determines the payment options available to you. Payment options include full payment, a short-term payment schedule (payment in 120 days or less) or a long-term payment plan (term contract) (payment over 120 days). If you are not eligible for a payment plan through the online payment agreement tool, you may be able to continue paying in installments. Total fines and interest can easily be as high as 9% to 12% per year, and taxpayers must be prepared to pay this amount in addition to their principal balance. This is why taxpayers are strongly advised to do more than the monthly minimum where possible. As a general rule, April 15 is the deadline for most people to file their individual income tax returns and pay the tax due. During processing, the IRS verifies the mathematical accuracy of your tax return.

When the processing is complete, you will receive an invoice if you owe taxes, penalties or interest. There is a tax of $89 to modify or terminate the temperance contract ($43 for low-income taxpayers). In addition, interest and penalties are applied to the outstanding balance until it is paid. The Office of Management and Budget has directed federal authorities to charge user fees for services such as the temperance contract program.