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can installment payment be set up to pay extension tax


tax1111

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I am guessing, but an extension payment is made by 18 April 2023, so an installment agreement that extends beyond that date would NOT be an extension payment.

Pay the most you can today. When filing the return, with final amounts, set up an installment agreement. You also can make "return payments" between now and then to keep paying down your expected balance due.

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An extension can easily be structured as a de facto installment payment plan for 6 months with no setup fee.  The simplest way I know to do this is to file an accurate extension (with or without payment-makes no difference), and then set up a personal EFTPS account and make payments through that account, applying them to the year under extension. You have a nice, neat, accessible record of your payments to date when you file the return. 

Of course, interest and FTP penalty on any unpaid balance will run during the extension period, but that would happen anyhow even if a formal installment agreement were possible  

 

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