What You Can Do If You Owe Tax Of $25,000 Or Less

The Online Payment Agreement (OPA) allows eligible individuals to apply for an installment agreement to pay off their tax liability. To qualify, you must have your bill from the IRS and have filed all required tax returns. You must owe less than $25,000 and be able to pay the entire liability within 60 months.

Paying your taxes in full and on time avoids unnecessary penalties and interest. However, if you cannot pay your taxes in full, you may request a payment agreement.

This application will allow you or your authorized representative (Power of Attorney) to self qualify, apply for an installment agreement, and receive immediate notification of approval.

There may be times when you will need to mail in paperwork or speak with us before we can determine your eligibility for an installment agreement. If that is the case, the OPA application will give you an address or a toll-free phone number to reach the IRS.

There are Three Options When Applying Online:

Pay in Full. You may agree to pay in full – you will save penalties and interest.

Short Term Extension. If you cannot pay in full at this time, you may be eligible for a short term extension of time to pay of up to 120 days. There is no fee for an extension to pay. If we grant online approval of your request for a short term extension, you will receive written confirmation within 10 days.

Monthly Payment Plan. If you cannot pay in full within 120 days, you may be eligible to make monthly installment payments. You must have filed all of your tax returns that are due.

Effective January 1, 2007 a $105 user fee will be added to the amount you owe and $52 for plans where the payments are deducted directly from your bank account. Or for eligible individuals with income at or below certain levels who apply and qualify, the reduced user fee of $43 will generally be added to the amount you owe including agreements where payments are deducted directly from your bank account.