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Installment Agreement Direct Debit Frequently Asked Questions

Posted by Admin Posted on Apr 03 2020

Installment Agreement Direct Debit Frequently Asked Questions

 

To help people facing the challenges of COVID-19 issues, the IRS through the People First Initiative, will temporarily adjust and suspend key compliance programs.

For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended.

 Q. Will direct debit payments continue to be deducted from my bank for Direct Debit Installment Agreements (DDIAs) during the suspension period?

 A. Yes. IRS will continue to debit payments from the bank for Direct Debit Installment Agreements (DDIAs) during the suspension period. However, taxpayers who are unable to comply with terms of their Installment Agreement may suspend payments during this period. Installment agreements will not default due to missing payments during the suspension period through July 15.

 Q. If necessary, what is the best way to suspend direct debit payments for a Direct Debit Installment Agreement (DDIA)?

 A. Taxpayers should contact their bank directly to stop payments if they prefer to suspend direct debit payments during the suspension period. Banks are required to comply with customer requests to stop recurring payments within a specified time frame.