The Devil, Er, IRS, to Pay

by Kelly on October 23rd, 2006

In part of its efforts to get more money faster be more tax-payer friendly, the IRS has finally brought its Installment Plan Agreement online.

The OIA is not to be confused with the OIC, the Offer in Compromise, which allows you to apply to reduce the total amount of tax due either because it is not your debt or because you cannot pay. The OIA is a mechanism that allows you to pay the total amount of tax due (including any applicable interest and penalties) over a timeframe agreeable to the IRS.

More importantly, you must be compliant to file the OIA. Compliant means that you are up to date with the filing and payment of all taxes (except, of course, the payment of those that you are applying for).

The OIA is available to taxpayers with $25,000 or less owed to the IRS. The OIA may be available to taxpayers who owe more but the IRS will likely require additional financial information filed together with a federal form 433F.

Curiously, the OIA is not available 24 hours per day, but only at the following times:
Monday - Friday    6:00 a.m. - 12:30 a.m. Eastern Time
Saturday    6:00 a.m. - 10:00 p.m. Eastern Time
Sunday    4:00 p.m. - 12:00 a.m. (midnight) Eastern Time