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Category: What if I Owe?

Online Payment Agreement

The Online Payment Agreement (OPA) is a web-based application on IRS.gov that allows taxpayers who owe $25,000 or less in combined tax, penalties, and interestto self-qualify, apply for, and receive immediate notification of approval. Taxpayers can also request an installment agreement before their current tax liabilities are actually assessed by using OPA. The OPA option provides a simple and convenient way to establish an installment agreement and eliminates the need for personal interaction with IRS and reduces paper processing.

 

The IRS fee for setting up an installment agreement to make payments by check, money order, credit card, or payroll deduction installment agreement has increased to $120 (from $105).  If you can pay the full amount you owe within 120 days, call 1-800-829-1040 to establish your request to pay in full.  If you can do this, you can avoid paying the fee to set up an installment agreement.  Instead of calling, you can apply online.The fee for setting up an installment agreement for each payment method is also shown below.

 

Payment MethodApplicable Fee
Check, money order, or credit card$120
Direct Debit$52
Payroll deduction installment agreement$120