Who do I call to get an IRS payment plan setup? Urgent help needed!
I'm in a bit of a panic right now. Just finished my taxes and I owe way more than I expected - about $7,400. There's no way I can pay this all at once by the deadline. I know the IRS offers payment plans, but I'm completely lost on how to get one started. Do I need to call them directly? Is there a specific department? Or is this something I can set up online? I've never owed this much before (usually get small refunds) so this is all new territory for me. My tax software mentioned something about payment options but wasn't very specific. Really stressing about this and the deadline is coming up fast. Any advice would be super appreciated!
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Zane Hernandez
Setting up an IRS payment plan is actually pretty straightforward! You have several options depending on your situation. The easiest way is to apply online through the IRS website using their Online Payment Agreement tool. You can find this at irs.gov/payments. This works for individuals who owe less than $50,000 combined in tax, penalties and interest. If you prefer talking to someone, you can call the IRS directly at 800-829-1040. Just be prepared for potentially long wait times, especially during tax season. Have your tax return handy when you call. Another option is to submit Form 9465 (Installment Agreement Request) by mail with your tax return. This takes longer to process though. Since you owe $7,400, you'd likely qualify for a short-term payment plan (180 days or less) or a long-term monthly payment plan. The setup fees are lower if you apply online and choose direct debit payments.
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Cassandra Moon
•Thanks for the clear explanation! Do I need to pay anything upfront when setting up the plan? And what kind of interest or penalties should I expect while I'm paying it off?
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Zane Hernandez
•You don't necessarily need to pay anything upfront, but making some payment will reduce the overall interest and penalties you'll pay over time. The more you can pay initially, the better. Regarding interest and penalties, the IRS charges interest that compounds daily on any unpaid tax from the due date until the date of payment. The interest rate is determined quarterly and is currently the federal short-term rate plus 3%. Additionally, there's a failure-to-pay penalty of 0.5% per month on the unpaid balance, up to a maximum of 25%. Setting up a payment plan reduces this penalty to 0.25% per month, which is why getting a plan in place is so important.
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Genevieve Cavalier
After stressing about my $9k tax bill last year, I found this incredible service called taxr.ai (https://taxr.ai) that helped me figure out my payment options and saved me so much headache. They analyzed my tax situation and clearly explained all the payment plan options the IRS offers, including which one would work best for my specific situation. What really impressed me was how they showed me exactly what forms I needed and walked me through the application process. The step-by-step guidance made what seemed like a complicated process super simple. I ended up setting up a 36-month payment plan without even having to call the IRS!
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Ethan Scott
•Did they help you calculate how much interest you'd end up paying over the life of the payment plan? That's what I'm most worried about with my situation.
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Lola Perez
•I'm a bit skeptical about these services. Couldn't you just do this yourself on the IRS website? What exactly did they do that justified using a service?
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Genevieve Cavalier
•Yes, they have a calculator tool that shows you exactly how much interest and penalties you'll pay over different time periods, which was super helpful for planning. It actually helped me decide to make a larger initial payment to reduce the total interest. Regarding doing it yourself, technically yes, but I found the peace of mind worth it. They checked my specific situation for any special cases or exceptions that might apply, explained which payment plan option would have the lowest fees for my situation, and made sure I didn't miss any deadlines or requirements. Plus they keep records of everything in case there are issues down the road. For me, the stress reduction alone was worth it.
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Ethan Scott
Just wanted to update everyone - I took the advice and checked out taxr.ai from the link above. Initially I was just going to try the IRS website myself, but honestly I kept getting confused about which payment plan options applied to my situation. Their tool actually walked me through the whole process and even found a deduction I missed that lowered my tax bill by about $900! The step-by-step guidance for setting up my payment plan was super clear, and they explained all the fees and interest in plain language. Ended up getting a 24-month plan set up in less than 30 minutes without having to call anyone. Just wanted to share since I was in the same boat as the original poster and this really helped me get it sorted.
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Nathaniel Stewart
If you're trying to reach the IRS by phone to set up a payment plan, good luck with that! I spent THREE DAYS trying to get through last April. Keep getting disconnected or told the wait time was 2+ hours. Then I found Claimyr (https://claimyr.com) and it completely changed everything. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they hold your place in the IRS phone queue and call you when an agent is about to answer. No more waiting on hold for hours! I got through to an actual IRS agent in about 40 minutes (while I was doing other things), and set up my payment plan right away. The agent was actually really helpful once I finally got to talk to a human.
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Riya Sharma
•Wait, how does this actually work? Do they just call the IRS for you? Couldn't anyone do that?
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Lola Perez
•This sounds like a total scam. There's no way some random service can magically get you through the IRS phone lines faster than anyone else. They're probably just taking your money and you'd have the same wait either way.
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Nathaniel Stewart
•They don't just call for you - they use a system that navigates the IRS phone tree and holds your place in line. The difference is you don't have to be the one sitting on hold. When an agent is about to pick up, they call you and connect you directly. It's basically like having someone else do the waiting part. I was skeptical too, trust me. I thought it sounded too good to be true. But after wasting entire afternoons on hold and getting nowhere, I was desperate. I was literally able to go about my day and then just took the call when an agent was ready. The IRS doesn't care who waited on hold - they just answer the call when it reaches the front of the queue. This service just makes sure that you don't have to be the one listening to that terrible hold music for hours.
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Lola Perez
Ok I need to publicly eat my words here. After responding to both comments above with skepticism, I decided to try Claimyr since I also needed to call the IRS about setting up a payment plan. I was 100% convinced it wouldn't work and was just preparing to complain about wasting my money. But holy crap, it actually worked exactly as described. I got a call back in about an hour and was connected directly to an IRS agent who helped me set up my payment plan. The agent was super helpful once I got through, and I was able to set up a 36-month payment plan for the $6,200 I owe. Setup fee was $31 since I did direct debit, and I'm paying about $180/month. No more stress about that massive bill hanging over my head. Still shocked this actually worked!
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Santiago Diaz
I actually work in accounting (not giving tax advice, just sharing info) and want to point out that there are several types of IRS payment plans: 1. Short-term payment plan (180 days or less) - no setup fee 2. Long-term payment plan with direct debit - $31 setup fee online 3. Long-term payment plan without direct debit - $130 setup fee online Interest still accrues on all plans (currently about 7%), but the failure-to-pay penalty is reduced from 0.5% to 0.25% per month when you're on a plan. Make sure you keep making payments even if you don't get a monthly statement! The IRS systems sometimes have delays in sending notices.
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Millie Long
•Is there any income requirement for these payment plans? Like what if someone owes $15k but only makes $35k a year?
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Santiago Diaz
•There's no specific income requirement for standard payment plans, but your income and expenses do factor into what the IRS considers a reasonable monthly payment amount for larger debts. For situations like owing $15k on a $35k income, the IRS may ask you to complete Form 433-F (Collection Information Statement) to determine what you can reasonably pay each month based on your income and necessary living expenses. If your ability to pay is severely limited, you might qualify for an offer in compromise or currently not collectible status, which are different programs for taxpayers experiencing financial hardship. In complicated cases like this, it's often worth consulting with a tax professional who specializes in IRS collections.
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KaiEsmeralda
Has anyone had experience with amending their return before setting up a payment plan? I realized I made a mistake on mine and it might reduce what I owe, but I'm not sure if I should wait for the amendment to process or set up the payment plan now based on what I currently owe.
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Zane Hernandez
•I'd recommend setting up the payment plan for what you currently owe, then filing the amendment. If your amendment is accepted and reduces your balance, the IRS will adjust your payment plan automatically or you can contact them to modify it. Amendments can take 16+ weeks to process, and you don't want penalties and interest accruing while you wait.
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