IRS News! Installment Agreement Updates

Today, the IRS introduced some new features to the interactive Online Payment Agreement application . This makes it easier for taxpayers to contact their representatives concerning their Installment Agreement

Now the system will permit:

1. Individuals to revise their payment due dates and/or amounts on existing agreements.

2. Individuals to revise existing extensions to regular installment agreements and direct debit installment agreements.

3. Individuals to revise existing regular installment agreements to a payroll deduction installment agreement or a direct debit installment agreement.

4. Practitioners with valid authorizations to use the signature date found on their approved Form 2848, Power of Attorney and Declaration of Representative, or the caller ID as an alternate way to authenticate when requesting agreements for clients.

According to the IRS, over 75 percent of taxpayers that are installment agreement eligible can start an IA through the online application. Since its launch in 2006, more than 30,000 taxpayers have successfully used it to set up a payment agreement.

Eligible taxpayers who owe $25,000 or less in combined tax, penalties and interest can self-qualify, apply, and receive immediate notification of approval. This includes pre-assessed agreements from 2007, Form 1040 liabilities, and paperless direct debit agreements.

Taxpayers who cannot pay in full may request a payment agreement. To be eligible, a taxpayer must first file all required tax returns and be current with estimated tax payments.

Now you have the smoking gun...Use it!