How does an IRS payment plan work after tax deadline day?

Thanks so much for the quick reply! So just to make sure I understand correctly - even though I won't make my first actual payment until the 28th, I won't get hit with any major penalties since I set up the plan before the deadline? And the interest/small penalty is just normal for anyone using a payment plan?

Yes, that's exactly right. By setting up the payment plan before the deadline, you've avoided the substantial failure-to-file penalty. You will still have some interest and a reduced late payment penalty apply to the unpaid balance, but that's standard for all installment agreements, regardless of when you make your first payment. The IRS recognizes that you've taken responsibility by establishing the plan before the deadline. Just make sure you have sufficient funds in your account on the 28th and for all future scheduled payments. If a payment fails, it could potentially default your agreement and create complications.

How does the tool actually work? Does it just explain stuff or does it help you set up the actual payment plan with the IRS too? I'm in a similar situation and honestly can't make sense of all the different payment options.

I'm kinda skeptical of anything that claims to make IRS stuff easier. Did you have to pay for this service? And how does it actually help with payment plans when you still have to go through the IRS website anyway?

The tool works by analyzing your specific tax situation and showing you all available payment plan options with detailed breakdowns of interest, penalties, and total costs. It doesn't replace the IRS website, but it makes the process much clearer before you go there. It doesn't directly set up the payment plan for you, but it prepares you with exactly what to expect and what to do on the IRS site. I found this preparation made the actual setup process way less stressful because I knew exactly what to select and why. They also have guides that walk you through each step of the official process.

How exactly does this work though? Like, do they just call the IRS for you? Seems weird that there's a service just for waiting on hold.

Sounds like a total scam to me. The IRS isn't THAT hard to reach if you call at the right times. No way this actually works better than just calling yourself. Probably just takes your money and gives you a fake "confirmation.

They don't call the IRS for you - they use an automated system that dials into the IRS hold system and monitors it. When a real person answers, you get an immediate call connecting you directly to that IRS agent. It's basically like having someone else wait on hold so you don't have to waste hours listening to the hold music. The service works because they're constantly calling the IRS and can get into the queue much more efficiently than individuals can. It's especially useful during tax season when hold times are ridiculous. You keep full control of the actual conversation - they just handle the hold time part. I was skeptical at first too, but when you've been disconnected four times after waiting an hour each time, it starts to look pretty valuable.

Thanks for the warning! Did you have to do anything special to get it fixed when the payments stopped? Or just call the IRS? I'm definitely going to mark my calendar to check after each payment date now.

I had to call the IRS, which was a complete nightmare - took three days of trying before I got through. They claimed my bank had rejected the withdrawal (which wasn't true - my bank had no record of any attempt). They had to set up the whole payment plan again, and I had to pay an additional fee for the "reinstatement" even though it was their error. The most frustrating part was they had my current contact info but never tried to notify me until after I had technically defaulted. My advice is to check your bank account AND your IRS account online every month, and if you see any issues, deal with them immediately before they snowball.

Setting up an installment agreement before the filing deadline counts as meeting your obligation. The agreement itself is considered timely, even if the first payment comes later. There will still be some interest and smaller penalties, but you avoid the big failure-to-file penalty. It's like telling the IRS "I acknowledge I owe this and commit to paying on this schedule" rather than ignoring the debt. As long as you keep making the agreed payments, you're in compliance.