If you are a low-income taxpayer and agree to make payments by direct debit (from a checking account), you are entitled to an exemption from the payment usage fee. A low-income taxpayer who is unable to make electronic payments using a debit instrument by entering into a DDIA will be entitled to a refund of the reduced user fee of $43 at the end of the instalment payment agreement. See 13c, further on, for more details. For instalment agreements entered into on or after April 10, 2018 by low-income taxpayers as defined below, the IRS waives user fees or reimburses them if certain conditions are met. If you are a low-income taxpayer and agree to make electronic payments using a debit instrument by entering into a direct debit rate agreement (DDIA), the IRS waives the user fee for the instalment payment agreement. See lines 13a, 13b and 13c, below, for more details. If you are a low-income taxpayer and cannot make electronic payments using a debit instrument by completing a DDIA, the IRS will refund you the user fee you paid for the instalment payment agreement after entering into the instalment payment agreement. For more information, see line 13c below. As of January 1, 2019, the user fee is $10 for instalment payment agreements that have been reinstated or restructured through an online payment agreement (OPA). You must have determined that an OPA will reinstate or restructure the instalment agreement in order to be eligible for the reduced user fees.
Low-income taxpayers may be reimbursed for these expenses under certain conditions. See Requirements for modifying or terminating a payment agreement at a later date. You will be charged interest and a late payment penalty for any tax that is not paid by the due date, even if your request for payment in instalments is granted. Any interest and penalties will be charged until the balance has been paid in full. However, for more information, see section 653, IRS Notices and Invoices, Penalties and Interest Charges under IRS.gov/TaxTopics/TC653. To limit interest and penalty fees, file your tax return on time and pay as much tax as possible with your return or cancellation. All payments received under the Remittance Agreement will be transferred to your account in the best interest of the United States. Your specific tax situation determines the payment options available to you. Payment options include full payment, a short-term payment plan (payment in 120 days or less) or a long-term payment plan (installment contract) (payment in more than 120 days). For more information about the IRS collection process and what to do if you can`t pay your taxes in full, see Pub. 594, The IRS Collection Process.
For more information on the collection process, taxpayers` rights, and how to appeal a collection decision, see IRS.gov/businesses/small-businesses-self-employed/collection-procedures-for-taxpayers-filing-and-or-paying-late. . . .