If you can pay the full amount you owe within 120 days, you can avoid paying the fees for setting up a temperance contract. You can request a short-term payment schedule if you can pay the full amount within 120 days using the IRS.gov/OPA takeover app or by calling the IRS at 800-829-1040. Low-income taxpayers who are unable to make electronic payments through a DDIA by providing their information on lines 13a and 13b are entitled to reimbursement of their user fees for staggered payments. If you are a low-income taxpayer and you have activated the 13c line box, your staggered payment will be refunded after your installment contract is concluded. For more information, please see user fee exemptions and refunds. If you apply for a deduction agreement with Form 2159, your user fees are $225. If you are a low-income taxpayer, you will later find additional information in reducing payment contract user fees. . The only payment option that qualifies the low-income taxpayer to waive the phased user fee payment is their consent to make electronic payments through a debit instrument by entering into a DDIA. For more information, see lines 13a, 13b and 13c. The IRS is aware that taxpayers can be hit hard by COVID. Tax payers who have a payment contract should contact a representative using the number on their notification.
Note: In order to protect the health and safety of staff, service may be delayed. The IRS is working to reopen its offices. Check the current status of IRS operations and services. a. Taxpayers can change most of the missed agreements with the online payment contract. Currently, taxpayers cannot change existing online debit contracts. Note: In order to protect the health and safety of staff, service may be delayed. The IRS is working to reopen its offices.
Check the current status of IRS operations and services. In general, the fee is $89 to change your temperance contract ($43 if you are a low-income taxpayer). However, from January 1, 2019, the user fee will be $10 for temperable contracts reintroduced or restructured through a takeover bid. This user fee applies only if the reinstatement or restructuring of the temperable contract has been justified by a takeover bid. We have added a text specifying when the IRS can terminate the payment contract. See what happens if the taxpayer does not comply later with the terms of the tempered agreement. Form 9465 contains additional text on paying the tax and providing up-to-date financial information upon request. For more information, please see The requirements for amending or terminating a missed agreement. . A missed contract can be terminated if you provide substantially incomplete or inaccurate information in response to an IRS request for a financial update, or if you provide this information to get the missed agreement.
For more information on what to do if your temperable contract is terminated, visit IRS.gov/CP523.