If your balance is no more than $US 50,000, you can request a payment plan online instead of filing Form 9465. Check out IRS.gov/OPA. If you create your installment payment contract with the OPA app, the usage fees you pay are lower than usual. As of January 1, 2019, the user fee is $10 for instalment payment agreements recovered or restructured by an online payment agreement (OPA). You must have noticed the reinstatement or restructuring of the payment contract in instalments by a takeover bid in order to qualify for the reduction of user fees. Low-income taxpayers can be reimbursed under certain conditions. See the terms of modification or termination of a instalment payment contract later. Use Form 9465 to request a monthly instalment payment contract (payment plan) if you are unable to pay the full amount listed on your tax return (or in a message we sent you). Most instalment payment agreements meet our optimized tempetaux payment criteria. The maximum duration of a streamlined agreement is 72 months. In some circumstances, you may have more time to pay or enter into an agreement for less than the amount of tax you owed. If, in the last 12 months, you have fallen behind with a instalment payment contract, the amount you owe is more than USD 25,000 but not more than USD 50,000, and the amount on line 11a (11b, if applicable) is less than that of line 10, you must complete Part II on page 2 of Form 9465.
You will be charged interest and a late payment penalty for each tax that is not paid by the due date, even if your request for payment in instalments is accepted. Interest and any penalties are calculated until the balance is paid in full. For more information, see Theme 653, IRS Communications and Invoices, Penalties, and Interest Charges IRS.gov/TaxTopics/TC653. To limit interest and penalties, file your tax return on time and pay as much tax as possible with your return or termination. All payments received under the instalment payment agreement will be transferred to your account in the best interest of the United States. For the construction of a payment contract in instalments, we charge a usage fee.