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  • mendoza@mendozaco.com

    Installment Agreements

    Installment Agreements

    Full Payment Agreements of up to 120 days

    If you can't pay in full immediately, you may qualify for additional time --up to 120 days-- to pay in full. There's no fee for this full payment agreement; however, interest and any applicable penalties continue to accrue until your liability is paid in full. You may be able to set up this agreement using the Online Payment Agreement (OPA) application or by calling us at 301-962-1700.

    Installment Agreements

    If you're not able to pay your balance in full immediately or within 120 days, you may qualify for a monthly installment agreement. An installment agreement allows you to make a series of monthly payments over time. The installment agreement is based on you economical needs and not the what the IRS recommends you pay.

    Don’t offer to pay more than you can reasonably afford. Once the IRS takes you up on your offer, you can’t renegotiate your agreement easily. So leave a cushion in your budget every month beyond the payment to the IRS for unforeseen expenses and emergencies. At the time you turn in your paperwork, offer to make a payment right then. The IRS typically takes a few months to get you all the paperwork detailing your IRS monthly installment plan, so making payments before the plan is finalized shows you can make the payments proposed. This may encourage the IRS to more readily accept your proposal.

    The Prerequisites

    Before you can file an application to request a payment plan with the IRS, you have to be in compliance with filing all tax returns and current with estimated tax payments. Having past due tax returns automatically disqualifies you from setting up a monthly installment plan. You must satisfy other conditions as well. For instance:

    • Individuals cannot owe more than $50,000, including past due income tax, late fees, and penalties. If you’re considered self-employed, you must be up-to-date on all your quarterly estimated tax payments for the year.
    • Businesses cannot owe more than $25,000 in payroll taxes and must be current on filing income tax returns.

    The IRS offers various options for making monthly payments:

    • Direct debit from your bank account,
    • Payroll deduction from your employer,
    • Payment by Electronic Federal Tax Payment System (EFTPS),
    • Payment by credit card via phone or Internet, or
    • Payment via check

    The IRS charges a user fee when you enter into a standard installment agreement or a payroll deduction agreement. See Additional Information on Payment Plans for more details.

    • If you haven't filed your return yet, you may submit Form 9465.pdf.
    • If you have filed your tax return and can't pay in full, you may request an installment agreement for your current tax liabilities using the OPA application. Even if the IRS hasn't yet issued you a bill, you may establish a pre-assessed agreement by entering the balance you'll owe from your tax return or notice of deficiency when prompted by OPA.
    • If you can't provide full payment after receiving a bill from the IRS call us.

    Before your installment agreement request can be considered, you must be current on all filing and payment requirements. Taxpayers in an open bankruptcy proceeding aren't eligible. You must specify the amount you can pay and the day of the month. You should base your monthly installment payment amount on your ability to pay and it should be an amount you can pay each month to avoid defaulting. Your payment date can be any day from the first to the 28th. 

    For a direct debit installment agreement, you must provide your checking account number, your bank routing number, and written authorization to initiate the automated withdrawal of the payment. 

    About Us

    Mendoza, Silva & Company, Inc. is a full-service accounting and IRS problem-solving firm. As a client, you gain a sound team with expertise in multiple fields, providing you the right advice to strengthens your organization and long-term goals.

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