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Set up a delinquent-tax payment plan online

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in Small Business Tax

The IRS has made it easier for delinquent taxpayers to qualify for a payment agreement by offering an online service. (IRS News Release IR-2006- 159) It can take just a few minutes to apply under the program and have your request approved, no questions asked!

How to do it: Simply go to the IRS Web site, Use the pull-down menu under “I need to ...” and select “Set Up a Payment Plan.” Then, follow the instructions.

To qualify for an online payment agreement, you must have a balance-due statement from the IRS, a Social Security number (or taxpayer ID number) and a personal identification number, which you can establish online.

The three payment options:

  1. Payment in full within 30 days
  2. Payment in full within 120 days
  3. A monthly installment plan for those who can’t pay in full

If the IRS approves the installment plan or 120-day payment extension, written confirmation will follow within 10 days. Interest and penalties will continue to accrue, and you’ll have to pay a $105 user fee under the monthly installment plan.

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