Technical topics regarding tax preparation.
US Installment Pay Plan option
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2-Dec-2019 4:08pm

Taxpayer owing $15,000 from recently filed 2016 tax return.
Wants to set up installment pay plan. Will do it online.
Cannot see in Publication 534 where it directs or informs how much he would pay each month???
Is the online application done without having to submit personal financial data?

2-Dec-2019 5:48pm

See "streamlined installment arrangement"

Balances under $25,000 paid in 72 months or less, or up to 50,000 if they agree to direct debit. No financial information required, it is automatic acceptance (with a very few exceptions). At 15,000 the payment would be about $210 per month.

16-Dec-2019 1:41pm

He can go to the setup IA link at http://www.irs.gov/Individuals/Online-P ... pplication and propose an amount. If it's not enough, the site will state what the minimum payment amount has to be. I always recommend the minimum because that provides the most flexibility. In a good month the taxpayer can mail in an extra payment that will be cheerfully accepted. In a bad month, they can coast with the minimum. Try to get the client to designate a payment date before the 15th of the month. Late payment penalty will accrue monthly on the 16th of each month so a payment received before then will not accrue the penalty on that payment. It's crumbs, but they are his crumbs.
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