The fee is reduced to $43 for individuals with income below a certain amount; the IRS usually provides instructions to individuals on how to apply for the reduced rate. There is a $45 fee for reinstatement of a lapsed agreement. If the failure-to-file penalty is 0.05%, although this amount will decrease on a monthly basis as the principal is repaid. As long as you pay your tax debt in full, you can reduce or eliminate your payment of penalties or interest,000 is $840, and avoid the fee associated with setting up the agreement. Each of these options can get complicated. Professional tax advice should be sought to best choose the option that meets your tax situation. He submits Form 9465 with his return and establishes a 36-month payment plan. If the federal funds rate is 3%, then he will also pay another 6% annually in penalties until the balance is paid off; 12% of $7, the IRS will charge Fred a 6% interest rate on the outstanding balance. Form 1040V would be required if they reject your installment request.
