Your client can’t pay their tax due by the July 15th deadline? July 2020 Tax News

During these unprecedented and ever-changing times, a growing number of taxpayers may be faced with financial difficulties. We have different options available for your clients who cannot pay a current year balance due by the July 15th deadline. One option is to set up an Installment Agreement (IA) with us.

Generally, individuals can qualify for an IA if:

  • The balance due is less than $25,000
  • The balance due can be paid within 60 months or less
  • Current with the last five years of tax filings

There are several different options to apply for an IA:

You will need to have bank account information when filling out the application. The Installment Agreement Request allows taxpayers to set up an automatic electronic funds transfer (EFT) withdraw directly from a bank account. Review Form 3567 instructions for further information.

Within 30 days of receiving a request by mail or phone, an Installment Agreement Acknowledgement notice is generated by us to advise the taxpayer of receipt and our processing timeframes.

Once the IA is approved a $34.00 installment agreement fee will be added to the tax liability. In situations where taxpayers may not meet the criteria for an IA, or already have an IA or wage garnishment in place with us, call (800) 689-7446 for assistance.