What are the methods available for me to pay for my installment agreement?

There are two ways you can make payments to the IRS for your installment agreement.

The first is what I call the traditional way. Entering into an installment agreement is basically like entering into an installment loan with any another creditor or maybe a credit card that you have that sends you monthly statements and tells you how much to pay.

Typically the IRS will send you a statement each and every month telling you how much to pay, which should be the agreed-upon amount. They will also tell you the date that it’s due,  and it’s up to you to put the check in the mail on a monthly basis so that it arrives at the IRS on the agreed-upon date for the agreed-upon amount. That’s the traditional installment agreement.

Within the last few years, the IRS has instituted a new way to pay called direct debit.

What happens here is similar. The IRS determines how much the installment agreement amount is going to be and what day of the month that you’re going to pay.

Then you fill out a simple form and you agree to allow the IRS to draft your bank account on a monthly basis for the agreed-upon amount on the agreed-upon date.

You give them your bank routing number and your bank account number and after a couple months they’ll get that set up.

Then on a regular monthly basis, they are going to pay your installment agreement for you, they’re going to draft your account and take the money against your installment agreement so you don’t need to worry about writing any checks.

You don’t have to worry about making sure it gets there on time through the mail. It’s done automatically for you.

These are the two ways you can pay on your installment agreement.