What Is an IRS Direct Debit Installment Agreement?

Did you know that the IRS will allow you to set up your formal Installment Agreement (IA) as a Direct Debit payment plan? For a lot of M&M’s clients, the Direct Debit IA is the safe bet. Instead of having to remember to send the IRS manual checks each month with the correct information written on it, to the correct address, the Direct Debit Installment Agreement (DDIA) payment is automatically taken from your account without you having to lift a finger. Of course you need to make sure the money is in the account. But, the possibility of a missed or late payment is reduced with the DDIA.

To turn your regular Installment Agreement into a Direct Debit IA, complete IRS form 433-D and submit it to the IRS. You may even be able to call the Service and fax your 433-D form to the IRS representative while you are on the phone. Individuals, in some cases, may also be able to avoid a tax lien by securing a DDIA.

Contact us to find out how you can get a DDIA to resolve your IRS back taxes.