The IRS will allow for a repayment plan to be auto-drafted out of a checking or savings account of your choice. However, if you feel the need to set up an IRS direct debit payment plan be ready for a few hurdles:
- You will need to be sure to provide banking information including your bank name, routing number, and account number
- You will need to provide employer information
- You will need to be sure you know how much is owed and the amount of you IRS installment plan
- You will need to be sure you are aware as to which date payments will be withdrawn
- You will need to fill out two forms (one for the IRS and one for your financial institution)
- You will need to be sure a payment plan has been negotiated
- Be prepared to wait at least 90 days for the direct debit plan to initiate
The direct debit program is great for taxpayers who use an auto debit payment system for all other bills. If you feel uncomfortable letting the IRS do the work feel free to set up a bill pay through your own bank. The direct debit program does come with a few perks such as qualifying for a specific type of plan and insuring the tax lien is not filed (if one is not already on record). If a tax lien does exist and a specific plan is set up you may qualify for a withdrawal of the lien.
If you are looking to set up a plan it might take a little more work than expected. Feel free to call HTG, your tax mitigation experts, at 720-398-6088.