The IRS offers numerous options for fulfilling your tax obligations via installments. The agency clearly favors direct debit, and for good reason: this improves the odds of the IRS regularly receiving the payments agreed upon in the accepted installment application. To this end, the application fee is far less for plans that involve direct debit.
If you’ve determined that direct debit is preferable to writing a check, paying with credit card, or using a money order, your next step involves the Direct Debit Installment Agreement (DDIA). Keep reading to learn how direct debt payments work and how you can make arrangements for the DDIA.
Applying for a DDIA
The DDIA is built into the overarching installment plan application. If you apply via IRS Form 9465, you’ll have the opportunity to enter direct debit information. Likewise, you can provide relevant payment details while applying for an installment agreement online. As mentioned previously, this will afford you the opportunity to pay a dramatically reduced application fee. If you’re a low-income filer, you could get the fee waived completely.
Adjusting Your DDIA
If you decide that you no longer want to pay via direct debit, you’ll need to alert the IRS as soon as possible. This can be accomplished by calling 800-829-1040 and speaking with a representative. Be aware that you may need to pay a modification fee.
Are you struggling to navigate the application process as you seek an IRS installment plan? You don’t have to go it alone. We can guide you through this process so you’re able to keep your stress to a minimum as you secure the best possible arrangements with the IRS. Contact the team at the Highland Tax Group to get started.