Payment Arrangements - Form 9465

[Yardley CPA]

Must the payment arrangement be taken automatically, electronically or can the client pay via an online service or credit card each month himself without the funds being taken automatically?

[Lion EA]

I'm thinking you get a lower interest rate if direct debit, but that's not really what you asked. Sorry, don't know your answer.

[Catherine]

Client can pay each month.  Yes, there is a discounted interest rate for direct debit payments.

[FDNY]

I usually send client to IRS website and let them set it up on their own, it's easy enough and no sweat for us.

[Randall]

2 hours ago, FDNY said:

I usually send client to IRS website and let them set it up on their own, it's easy enough and no sweat for us.

I agree. I don't want to do this for people.  Sheesh.

 

[Possi]

The actual cost of the agreement is cheaper when you do the direct deposit. If they can pay in 90 days, do not do the installments. Instead, have the client call the IRS and work that out. 

[Catherine]

7 hours ago, Possi said:

Instead, have the client call the IRS and work that out. 

What I generally tell people in this situation is to send what they can.  They'll get a letter saying "Hey, you still owe us $X" then send some more.  Rinse and repeat - so long as you can do it in no more than four "chunks" of money.

[Roberts]

I only have a few clients who can't pay and I tell them to just make payments as quickly as they can. As long as you don't owe too much, the IRS isn't going to get all upset if you are making monthly payments on the balance owed.