IRS Installment Agreements / Massachusetts DOR Installment Agreements

If you cannot pay the full amount of taxes you owe by the April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. There are also alternative payment options to consider:

You can pay your balance in monthly installments through an Installment Agreement. The IRS charges a $105 fee for setting up an Installment Agreement. The fee is only $52 if you pay via direct debit. If your income is below a certain level  you may qualify for a $43 fee. You will also be required to pay interest plus a late payment penalty on the unpaid taxes for each month or part of a month, after the due date that the tax is not paid. If you do not file your return by the due date — including extensions — you may have to pay a failure-to-file penalty.  Installment Agreements can be set up to cover multiple periods of unpaid taxes.

The Massachusetts Department of Revenue has similar procedures to set up Payment Agreements to pay past due taxes over an extended period of time.

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