Handle More Installment Agreement Functions Online

If you can't pay your tax bill in full and want to arrange to pay it off in installments, you can use the IRS Online Payment Agreement (OPA) application. The OPA application can be used to obtain an installment agreement if you owe $25,000 or less in combined tax, penalties, and interest. More than 75% of those eligible for an installment agreement can choose the online method instead of submitting a paper form (Form 9465, Installment Agreement Request). OPA has been used successfully by more than 30,000 taxpayers since its inception in October 2006.

New functions

The online system has now been expanded to include the following functions:

• Revising the payment due dates and/or amounts on existing agreements.
• Revising extensions to regular installment agreements and direct debit installment agreements (where payments are automatically debited from taxpayers' bank accounts).
• Revising existing regular installment agreements to a payroll deduction installment agreement or a direct debit installment agreement.
• Allowing practitioners, such as CPAs, with valid authorizations to use the signature date found on their approved Form 2848, Power of Attorney or Declaration of Representative, or the caller ID as an alternate way to authenticate when requesting agreements for clients.

Information needed for OPA applications

To use the online system before you receive any tax bill from the IRS, gather the required information to proceed:

• The balance due shown on the return
• Your taxpayer identification number (Social Security number) and your spouse's number (if applicable)
• Your date of birth
• Your adjusted gross income from last year's income tax return
• The total tax from last year's income tax return

Once you receive a balance due notice from the IRS, you can still request an installment agreement but you'll need additional information to proceed. You'll need your personal identification number (PIN) if you already have one. If not, refer to the IRS notice that displays your Caller Identification Number (Caller ID) to obtain a PIN. If you don't have either, you will need to call the IRS. And, when applying for a monthly payment plan, you need information about your income and expenses (rent or mortgage statements, pay stubs, utility bills, etc.) to determine the amount of your monthly installment payment that fits within your budget.

Source: IR-2008-77, 6/6/08