where to mail irs installment payments

where to mail irs installment payments

How to apply for Installment Payments with IRS?

IRS will grant you an installment agreement, divide the amount you owe by 60 months and that is the minimum payment IRS will accept. IRS will not accept any payment lower than $25.00. IF you owe over $25,000.00 you will have to provide form 433-F Collection Informaiton Statement along with Form 9465. IRS will send you a letter letting you know if you IA was granted and the condition of the installment agreement.

WASHINGTON — The application for requesting a reduced fee for entering into an installment agreement for the payment of federal taxes owed is available, the Internal Revenue Service announced today. Form 13844, Application for Reduced User Fee for Installment Agreements, is used to request the reduction. The IRS is working to automate the application process to calculate the appropriate user fees up front, eventually phasing out Form 13844.

Effective January 1, 2007, user fees rose to $105 for non-direct debit agreements, $52 for direct debit agreements and $45 for reinstatements. Individuals entering into an installment agreement with income at or below certain established levels, based on the Department of Health and Human Services poverty guidelines, can apply to pay a reduced user fee of $43 for new agreements. This also includes agreements where payments are deducted directly from a bank account. Form 13844 contains steps an individual can use to determine if they qualify for a reduced fee. Qualified applicants should submit the form to the IRS within 30 days from the date of their installment agreement acceptance letter.

Form 13844 does not prevent an applicant’s current year refunds, if any, from being applied to prior taxes being paid in installments or to prior taxes the IRS has deemed currently not collectible. To be eligible for an installment agreement, a taxpayer must first file all tax returns they are required to file and be current with estimated tax payments, if applicable.

The reduced user fee for individuals with incomes at or below the established levels does not apply to corporations or partnerships. And there are no user fees for continuous wage levies initiated by IRS collection personnel. Form 13844 should not be filed for these situations.Form 13844 is available in the Forms and Publications section of the IRS Web site at IRS.gov or may be ordered by calling toll-free 1-800-TAX-FORM (1-800-829-3676).

Contact IRS at 1-800-829-0922

IR-2006-196, IRS Announces Installment Agreement User Fee Increases for Some Taxpayers

IR-2006-159, IRS Announces Online Payment Agreement Application

How To Mail IRS Payments Via USPS

The Internal Revenue Service maintains service centers across the United States, so the address to which you should mail your payments via the U.S. Postal Service depends on where you live. It will also depend on the nature of the payments. If you are sending a payment after completing a return for the prior year's income taxes, see the instructions for Form 1040-V below. If you are sending estimated tax payments for the current tax year, see the instructions for Form 1040-ES. If you are sending any other payments, including payments in fulfillment of an installment agreement, see the instructions under "Other Payments."

Download and print IRS Form 1040-V from the link in References below if you will be mailing a payment with a completed return or if you filed a return electronically and are now mailing a payment. Although the IRS doesn't require this form, it strongly encourages you to use it to ensure that your account is properly credited.

Fill out the payment voucher with your name, address, Social Security number and the amount of your payment.

Write a check, or obtain a money order, payable to "United States Treasury" for the amount of your payment. Write your Social Security number on the check. Also write the tax year and the type of return you are filing. So, if you were filing a Form 1040A for 2010, you would write "2010 Form 1040A."

Detach the payment voucher from the form.

Find your state on Page 2 of the form. Mail your payment and your 1040-V -- and your completed return, if applicable -- to the address that corresponds to your state. Note that there are different addresses for returns prepared by individuals and those prepared by professional tax preparers.

Download and print IRS Form 1040-ES from the link in References below if you are making an estimated tax payment for self-employment income or some other reason.

Fill out the proper coupon for the quarter of the year for which you are paying estimated taxes. Form 1040-ES comes with four coupons, one for each quarter. Include your name, address Social Security number and amount of the payment.

Write a check, or obtain a money order, payable to "United States Treasury" for the amount of your payment. Write your Social Security number on the check, along with the tax year and the ES form number, such as "2010 Form 1040-ES."

Detach the coupon from the form.

Find the section in the 1040-ES instructions titled "Where To File Your Estimated Tax Payment Voucher if Paying by Check or Money Order." Locate the proper address for your state of residence. Mail your payment and your Form 1040-ES coupon to the applicable address.

Make out a check, or obtain a money order, payable to "United States Treasury" for the amount of your payment. Write your Social Security number on the check. If you have an installment-agreement coupon or other payment voucher, follow its instructions for what else to put on the check.

Visit the link for "Other Payments" in the References section below.

Find the proper chart for your employment circumstances. One chart applies only to self-employed people who filed Schedule C or F; the other applies to people with only wage income.

Locate the proper address to send payments for your state. Mail your payment and any coupon or voucher to that address. If you have no coupon, statement or voucher, include a brief explanation of the purpose of your payment.

IRS Payment Plans and IRS Installment Agreement

Stressed about how to pay the IRS? Fortunately, there are many ways to pay federal taxes, including IRS installment payments. There may even be a way to pay less than you owe or temporarily delay payments until you are able to afford them.

Ways to Pay the IRS (Internal Revenue Service)

There are more personal checks written to the US Treasury on April 15th than nearly any other day during the calendar year. With that said, fewer checks are being written than once were. This is in part because consumers have more options to pay their bills than ever before. This is true everywhere, but especially so at the US Treasury. Below you can find a list of the current approved payment methods for ways of paying your taxes:

  1. Electronic Federal Tax Payments System (EFTPS®)

This system allows electronic payments using the Internet, or telephone payments using voice response. After enrolling in the program, the taxpayers can login using their EIN or SSN, their PIN and a password. Payments can be made 24 hours a day / 7 days a week.

After enrolling in EFTPS either through the website or by phone at 1-800-555-4477, you can begin to make payments. To do this, you must provide three pieces of information: your SSN or EIN; a PIN, which will be provided to you in the mail; and an Internet password, which you select during enrollment.

Through EFPTS, you can make all federal tax payments, including for estimated taxes, excise taxes, income taxes and employment taxes. Payments can be scheduled up to 365 days in advance, and they can be canceled or altered up to two business days before they made.

The IRS now accepts debit and major credit card payments through an approved third-party payment processor. These processors charge convenience charges that vary among the providers.

Each processor has its own processing fees, which are added to the balance owed. These fees are sometimes tax-deductible, so keep a record of your payments. The fee for using a credit card is usually between 1.88% - 2.35% for credit cards and $2.99 - $3.95 for debit cards. Since the types of cards accepted by the providers also vary, you, the taxpayer, may need to find the best provider for you.

Please keep in mind that you may be subject to credit card interest fees in excess of IRS non-payment fees, so if you can't pay your credit card balance in full, you could end up paying a lot more interest than you would have otherwise.

In order to use one of these services, you, the taxpayer, will need to provide all necessary Social Security Numbers (taxpayer and spouse if filing jointly), billing address, amount owed, credit card number/expiration/cvv, daytime telephone number and email address (used to confirm payment).

Personal checks, cashier's checks and money orders are all accepted. When making payment this way, you, the taxpayer, will need to make sure to make it payable to the United States Treasury (rather than Internal Revenue Service or IRS). Include a daytime phone number, your SSN, note the tax year the payment is for and if the filing was a different-1040s.phpdifferent-1040s.phpdifferent-1040s.php, EZ, A and estimate payment. This should appear something like "XXX-XX-XXXX 2013 Form 1040EZ". Note: staples and paper clips should not be used to attach checks to vouchers.

Make your check or money order payable to the U.S. Treasury. Place it in the envelope with the form or notice loose; without clips or staples. If you are submitting a payment for your 1040, 1040A or 1040-EZ, complete and include Form 1040-V with your payment.

On the check or money order, include the following information:

  • Your name, address and phone number
  • Your social security number (SSN) or employer identification number (EIN)
  • The applicable tax period
  • The notice or form number that corresponds with your payment
  • Pay with Direct Pay

    The IRS lets taxpayers make payments directly from their checking and savings accounts through a feature called Direct Pay. You can make estimated monthly tax payments or pay your tax bill via this method.

    Direct Pay is handled entirely online. The process is simple. After providing your tax information, you verify your identity by answering a series of questions. Next, you provide your personal information and then review and electronically sign the agreement. You will then receive a confirmation that you can print and/or save to your computer.

    If your tax payment is due imminently and there's no way to get it to the IRS on time to avoid fees and penalties, a wire transfer may be the fastest option. First, check with your financial institution to see if you can make wire transfers. Next, download and complete the Same-Day Taxpayer Worksheet and bring it to your bank. Please note that you must use a separate worksheet for each tax period and/or form.

    You may be eligible for an IRS payment plan if you owe $50,000 or less in individual income tax (including penalties and interest) as long as you up-to-date with your required tax returns. Businesses may be eligible for IRS installment agreements if they owe $25,000 or less in payroll taxes and if they have filed all of their required returns. If this is the case for you or your business, you can apply for an installment agreement with the with the IRS.

    Remember, payment in full, can reduce (even eliminate) penalties, interest and help you avoid the fees associated with not paying your tax bill on time.

    If you're unable to pay part or the entire amount of what you owe for any reason, make sure you first file your return in a timely manner. This should help you to avoid the failure-to-file penalty, which can be as much as 5 percent of the balance owed per month (up to a maximum of 25 percent). When you file on time without paying, penalties will still be assessed. However, those penalties are far less substantial, often 0.5 percent of the amount due per month in comparison.

    After filling your return, the next step is to try and open up a line of communicate with the IRS to make a good faith effort to pay whatever you can. The following are some of the options that may be available to you if you are not prepared or able to pay your tax bill:

    The IRS is often willing to grant IRS payment agreement (starting at just $25 a month), and applying for one can help you avoid more serious consequences like liens and levies. Installments accrue both interest and contain setup fees so it is not without cost.

    To select this option, a person must first file their return and then complete an application for installment.

    Applying for an Online IRS Installment Agreement

    If you owe less than $50,000 in taxes, penalties and interest combined and have filed all of your returns, you may be eligible for an online payment agreement. It's especially likely if you have always filed and paid your taxes on time and owe less than $10,000.

    Once you have transmitted all required tax returns including any prior year returns you can begin the process by applying online through the IRS website. You will need to create a user login, and to do this you must provide the following information:

    • Full name
    • Email address
    • Address from most recent tax return
    • Filing status
    • Date of birth
    • Social security number

    To begin making installment payments to the IRS, you will need to complete Form 9465 - Installment Agreement Request (found here). You will also need to complete Form 433-F - Collection Information Statement (here).

    Keep in mind that even if you are approved for an installment plan, interest fees and penalties keep accruing on the balance owed.

    Typical fees for an installment plan is as follows:

    • A one-time fee of $120 for the service
    • Direct debit plan $52.
    • Payroll deduction plan $105. Certain low-income individuals may qualify for a reduced fee of $43

    Small businesses with employees may also be eligible to request an IRS installment agreement if they owe $25,000 or less at the time the agreement is established or if they are able to pay down any excess amount over the $25,000 that is due prior to entering into the agreement. Note that the IRS requires that small businesses enroll in a Direct Debit Installment Agreement if the amount owed is between $10,000 and $25,000. Businesses can apply online if they owe $25,000 or less in payroll taxes, or they can call the number on their bill or notice or the IRS Business and Specialty Tax assistance line (800-829-4933).

    Even if you or your business are not eligible for an online IRS payment agreement, you can still make partial payments to the IRS which may help to lower interest expense. To initiate the process, call the phone number on your bill or notice. If no notice or bill is available, call 1-800-829-1040 for assistance.

    Pay the IRS through an Offer in Compromise

    If you will be unable to settle your full tax liability and don't anticipate the ability to do so within three to five years, the IRS may be willing to accept a lump-sum offer. The agency refers to this as an Offer in Compromise (OIC), but only grants OICs under extreme circumstances.

    You are not eligible for an OIC if you are not current with all of your filing requirements. If you are currently in active bankruptcy, OIC is also not an option. There are other eligibility requirements as well. To find out if you may qualify use the IRS's online Offer in Compromise Pre-Qualifier tool (you can find this here).

    If it appears you are eligible for an OIC, you will need to file Form 656 - Offer in Compromise and Form 433-A - Collection Information Statement. An application of $186 applies. If you are applying for a periodic plan that stretches over 24 months, you must include your first payment when you file these forms. If you are opting for a lump-sum OIC, in which you pay a reduced bill in five payments or fewer and within five months of the IRS's acceptance, you must include a payment worth 20 percent of the reduced bill.

    Circumstances that determine the compromise are as follows:

    • The ability of the taxpayer to pay or not
    • Current and projected income level
    • Fixed expenses such as mortgage, rental payments, utilities and other liabilities
    • Total assets and their related value

    For questions regarding any of these options or information provided here, you may wish to contact the IRS for additional assistance. You can find contact information here.

    While the IRS is often willing to work with taxpayers, please remember than they are legally bound to try and collect all of the taxes owed. If a taxpayer fails to make their required, under law, the IRS can place a lien against property, collect payment from wages paid by your employer, and freeze bank accounts as well as other legal remedies.


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    Managing Partner at Geer & Associates, Certified Public Accountants

    Payment Plans, Installment Agreements

    If you're financially unable to pay your tax debt immediately, you can make monthly paymentsthrough an installment agreement. As long as you pay your tax debt in full, you can reduce or eliminate your payment of penalties or interest, and avoid the fee associated with setting up the agreement.

    Before applying for any payment agreement, you must file all required tax returns.

    You may be eligible to apply for an online payment agreement

    • Individuals must owe $50,000 or less in combined individual income tax, penalties and interest, and have filed all required returns.
    • Businesses must owe $25,000 or less in payroll taxes and have filed all required returns.
    • If you meet these requirements, you can apply for an online payment agreement.

    Even if you're ineligible for an online payment agreement, you can still pay in installments

    • Complete and mail Form 9465, Installment Agreement Request (PDF) and Form 433-F, Collection Information Statement (PDF);
    • Call 800-829-1040 or the phone number on your bill or notice

    Small Businesses can apply for an in-Business Trust Fund Express installment agreement

    • Call the IRS Business and Specialty Tax assistance line 800-82&-4933;
    • Call the phone number on your bill or notice;
    • More information

    Understand your agreement & avoid default

    • Your future refunds will be applied to your tax debt until it is paid in full;
    • Pay at least your minimum monthly payment when it's due;
    • Include your name, address, SSN, daytime phone number, tax year and return type on your payment;
    • File all required tax returns on time & pay all taxes in-full and on time (contact us to change your existing agreement if you cannot);
    • Make all scheduled payments even if we apply your refund to your account balance; and
    • Ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address (PDF).

    If you don't receive your statement, send your payment to the address listed in your agreement.

    There may be a reinstatement fee if your agreement goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact us immediately. We will generally not take enforced collection actions:

    • When an installment agreement is being considered;
    • While an agreement is in effect;
    • For 30 days after a request is rejected, or
    • During the period the IRS evaluates an appeal of a rejected or terminated agreement.

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    IRS Mailing Address: Where to Mail IRS Payments

    To avoid becoming a victim of interest charges and late charges as a result of delayed processing, it is important to send your tax payment to the right IRS payment address. To get this right, you must know the correct address required to send your money.

    However, it is important to note that there is no single IRS payment processing platform that handles all tax payment. Therefore, you are expected to mail your money order or check to the IRS platform that is in charge of the particular type of payment. Note that getting it right will ensure your payment will be processed accurately and on time.

    Mailing Address for Individual Tax Payment(Form 1040-V)

    For people who owe money on their tax balance, one way of making payment is by mailing a money order or check to the IRS. The IRS may send you a notice stating your balance and where to send the payment or you can use the payment voucher which is the Form 1040-V to pay the amount that is due on your form 1040, 1040A or 1040EZ. The following table summarizes the mailing addresses of any Form 1040-V payments according to people who live in the areas.

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