How to Change an Installment Agreement so the IRS Will Take It out of My Bank Account

When you establish an installment agreement with the Internal Revenue Service (IRS) to pay an outstanding tax obligation, you are at first required to mail in your monthly payments. The IRS keeps you on this type of payment method unless you request an alternative method such as a direct-debit installment agreement, which will automatically debit your checking account each month. The easiest way to request such an arrangement is to visit the IRS website and use its Online Payment Application (OPA).

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Step 1

Examine your most recent IRS correspondence concerning your balance or installment agreement. The IRS sends monthly reminders that your regular installment payment is due. Note the "Caller ID" in the upper right corner of the letter. which you will need in setting up a direct-debit agreement.

Step 2

Obtain your Adjusted Gross Income (AGI) from your most recently filed tax return. This figure can be found on line 37 of Form 1040, line 21 of Form 1040A and line 4 of Form 1040EZ. The IRS uses your AGI to verify your identity and allow you to access your account through the portal for the Online Payment Agreement (OPA).

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Step 3

Navigate to the OPA secure portal and click the link titled "Apply for a Payment Agreement." Use the application to establish a login and password to access your existing installment agreement account. To access this application, you must provide your social security number, date of birth, AGI and Caller ID from your IRS monthly reminder letter.

Step 4

Log in to your account. Select the option to revise the payment method for your existing installment agreement. You may use the OPA to change your payments from routine or mail-in payments to direct-debit payments. Select a date to have your payments debited from your bank account, and provide the routing and account numbers. These numbers are located at the bottom of your checks for the account.

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