How do i make a payment plan with the irs

For Individuals or Businesses in Financial Difficulties

IRAS may offer a suitable payment arrangement, such as a longer instalment plan, if you are unable to pay your tax due to unexpected or extenuating circumstances including:

• High medical expenses
• Loss of employment or substantial reduction in income
• Business under financial distress (e.g. facing lawsuits from creditors or business closure)

Arranging for a Longer Payment Plan

If you require more time to pay for your taxes, you may appeal for a longer payment plan via the ‘Apply for Payment Plan’ digital service at mytax.iras.gov.sg. Note that instalment plans are only available if you choose to pay via GIRO.

If you have an existing GIRO arrangement

View the video below on how to customise your payment plan in 2 simple steps:

1. Cancel existing plan
2. Arrange new plan

You may also view the cancel and reactivate GIRO guide (PDF, 1.36MB) for the detailed steps.

If you do not have an existing GIRO arrangement (for Individual Income Tax and Property Tax)

View the video below on how to customise your payment plan in 2 simple steps:

Alternatively, you may refer to the apply for payment plan guide (PDF, 2.32MB) for the detailed steps.

If you do not have an existing GIRO arrangement (for Corporate Income Tax and Goods and Services Tax)

Customise your payment plan in 2 simple steps:

IRAS will review your request and inform you of the outcome within 15 working days. You may also be asked for more information for IRAS to better understand and assess your situation.

If your payment plan is approved, you must comply with the payment plan schedule. Otherwise, IRAS will cancel the plan and take actions to recover the tax.

Financial and Other Support Services

If you require other forms of assistance specific to your circumstances, you may wish to approach the following agencies:

For social assistance

For employment assistance

For enterprise assistance

Enterprise Singapore provides companies with various financial and non-financial assistance schemes.

FAQs

IRAS will consider granting extended instalments only if you are in financial difficulty due to the following reasons: 

For Individuals

• Loss of job/business failure
• Reduction in income or business cashflow
• No steady source of income
• High medical expenses incurred for yourself or your immediate family members

For Businesses

• Slow collections
• Reduction in sales
• Increase in overheads

If you cancel your existing GIRO payment plan, you need to apply for a new payment plan immediately to avoid having to make full payment of the tax.

To ensure that you have revised your GIRO payment plan, you should see the Acknowledgement page showing your payment plan details and application status as ‘Approved’. For requests pending approval, IRAS will review your appeal and inform you of the outcome within 15 working days.

If you owe a lot of money in taxes and can’t afford to pay your tax bill, you can set up a payment plan with the IRS. These plans are flexible and can help you avoid expensive penalties for failing to pay or file your taxes.

If you can’t afford to pay your taxes, you may be able to qualify for an installment plan with the Internal Revenue Service.

• An installment plan allows you to pay your taxes over time while avoiding garnishments, levies or other collection actions.
• You'll still owe penalties and interest for paying your taxes late, but it can help make the payments more affordable.
• The minimum monthly payment for your plan depends on how much you owe.

Minimum monthly payment

You can apply for an installment agreement online, over the phone, or via various IRS forms.

• To some degree, you get to choose how much you want to pay every month.
• The IRS will ask you what you can afford to pay per month, encouraging you to pay as much as possible to reduce your interest and penalties.
• If you choose not to answer, select too low of an amount, or let the IRS pick a payment amount for you, your minimum payment will typically be set to the amount that you owe divided by 72.

Fees for IRS installment plans

If you can pay off your balance within 180 days, it won't cost you anything to set up an installment plan.

• If you cannot pay off your balance within 180 days, setting up a direct debit payment plan online will cost $31, or $107 if set up by phone, mail, or in-person using Form 9465.
• If not using direct debit, then setting up the plan online will cost $130.
• If not using direct debit, setting up the plan by phone, mail, or in-person will cost $225 using Form 9465.
• If you're a lower-income taxpayer, you may be able to reduce these fees.

Balance of $10,000 or below

If you owe less than $10,000 to the IRS, your installment plan will generally be automatically approved as a "guaranteed" installment agreement.

• Under this type of plan, as long as you pledge to pay off your balance within three years, there is no specific minimum payment required.
• For balances above $10,000, you may have to provide additional information in order to qualify.

Balance between $10,000 and $50,000

With a balance due above $10,000, you can qualify for a streamlined installment plan.

• While acceptance isn't guaranteed, the IRS doesn't usually require additional financial information to approve these plans.
• With a streamlined plan, you have 72 months to pay.
• The minimum payment is equal to your balance due divided by the 72-month maximum period.
• If you can't pay an amount equal to what you owe divided by 72, you will need to complete Form 433-F unless you qualify for an exception.

Balance over $50,000

Qualifying for a plan with a higher balance due requires additional information.

• The IRS will want to know about your income and expenses on Form 9465-FS and Form 433-A.
• On Form 433-A, you'll have to provide detailed information on your investments, assets, income and bank accounts.
• If you have any meaningful assets, you might have to sell some to pay down your outstanding balance.
• Your minimum payment in this situation will be unique to the specific agreement you strike with the IRS.

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