IRS Streamlines Online Payment Plan Applications for Individuals and Sole Proprietors
The Internal Revenue Service (IRS) has enhanced its online payment agreement application process, allowing individuals, including sole proprietors and independent contractors, to apply for payment plans more easily. To utilize this online service, applicants must first create an IRS Online Account, which requires photo identification for verification. For those opting for a direct debit payment plan, bank routing and account numbers are also necessary. This online system aims to simplify the process for taxpayers who need to pay off their tax balances over time, offering immediate notification of approval upon completion of the application. The IRS notes that setup fees for payment plans may be higher if applications are submitted via phone, mail, or in-person, encouraging the use of the online portal.