What is the Online Payment Agreement?
The Online Payment Agreement or OPA is an online function of the IRS where you can set up an Installment Agreement. If you have filed all your tax returns and owe under 25,000, you can use this system to set up an Installment Agreement. If you have received a notice of taxes due, your notice will have the information you need to complete the application. If you do not have a notice, the IRS website will explain what information you need to set it up. Here are your 3 payment options listed on IRS website:
- Pay in Full
You may agree to pay in full – you will save penalties and interest. - Short Term Extension
If you cannot pay in full at this time, you may be eligible for a short term extension of time to pay of up to 120 days.- There is no fee for an extension to pay.
- If we grant online approval of your request for a short term extension, you will receive written confirmation within 10 days,
- Monthly Payment Plan
If you cannot pay in full within 120 days, you may be eligible to make monthly
installment payments.- You must have filed all of your tax returns that are due.
- Effective January 1, 2007 a $105 user fee will be added to the amount you owe and $52 for plans where the payments are deducted directly from your bank account. Or for eligible individuals with income at or below certain levels who apply and qualify, the reduced user fee of $43 will generally be added to the amount you owe including agreements where payments are deducted directly from your bank account.
- If we grant online approval of your request for monthly installments, you will receive written confirmation within 10 days.
If you are unable to set up your Installment Agreement through the OPA, you can either contact the IRS or an Enrolled Agent who can represent you before the IRS.