2019 Installment Agreement

If you owe back taxes to the Internal Revenue Service (IRS) but cannot afford to pay the full amount all at once, an installment agreement may be the solution you need. An installment agreement is an agreement between you and the IRS that allows you to pay your tax debt over time, rather than all at once. In 2019, there are several changes to the installment agreement program that taxpayers should be aware of.

First, the minimum payment under an installment agreement has changed. In the past, the minimum payment was $25 per month. However, beginning in 2019, the minimum payment is now $50 per month. This means that taxpayers who owe back taxes to the IRS will need to pay at least $50 per month towards their debt in order to establish an installment agreement.

Second, the fees associated with installment agreements have changed. In the past, the fee to establish an installment agreement was $105. However, beginning in 2019, the fee to establish an installment agreement is now $31 if the taxpayer agrees to make their payments through direct debit. If the taxpayer chooses not to make their payments through direct debit, the fee is $149. This change is designed to encourage taxpayers to make their payments through direct debit, which is the most convenient and secure way to make payments.

Third, there are changes to the options available for taxpayers who owe less than $50,000. Beginning in 2019, taxpayers who owe less than $50,000 can establish an installment agreement online, without having to speak with an IRS representative. This is a significant change, as it allows taxpayers to establish an installment agreement quickly and easily, without having to spend time on the phone with the IRS.

Overall, the changes to the installment agreement program in 2019 are designed to make it easier for taxpayers to establish an installment agreement and pay their back taxes. If you owe back taxes to the IRS and cannot afford to pay the full amount all at once, an installment agreement may be a good option for you. Be sure to familiarize yourself with the changes to the installment agreement program in 2019 and speak with a tax professional if you have any questions or concerns.