Applying Online for an IRS Payment Plan: The Basics of the OPA

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You are eager to finally pay off your IRS balance and get in the clear. Unfortunately, determining a path forward can prove surprisingly tricky.

As you assess your options, you may eventually find that the OPA is your best bet for setting up a realistic payment plan. However, this option is not ideal for every type of taxpayer. The more you know in advance, the better your chances of securing the best possible payment plan. Read on to discover whether the OPA is right for your tax situation:

What Is an IRS OPA?

The Online Payment Agreement (OPA) allows you or a trusted tax representative to develop a payment plan with the IRS. This plan will ultimately allow you to resolve your tax debt over time. The online option can sometimes prove more efficient than working out deals with the IRS over the phone. After all, it is not uncommon for call wait times to exceed half an hour.

Requirements for Using the OPA

Not all taxpayers are eligible for the IRS OPA. For individuals, the tool is limited to those who owe $50,000 or less in combined taxes, penalties, and interest. This limit is even lower for business taxpayers: just $25,000 in combined taxes, penalties, and interest. For both individuals and business taxpayers, all required returns must be filed prior to using the OPA. If based on these requirements, the OPA is not a viable option, taxpayers can either call the IRS or complete Form 9465.

Not sure if the OPA is the right solution for your tax situation? Don’t move forward with an installment plan until you feel confident that you are pursuing the right option. You can establish this much-needed sense of confidence by working with the Highland Tax Group. Contact us today to learn more about our numerous tax resolution and planning services.