Get Form 2159 - Internal Revenue Service - Osc Nc

A payment plan with the IRS where you agree to have your monthly payments automatically withdrawn from your checking account is a direct debit installment agreement (DDIA). A DDIA has several advantages: lower user fees and less chance the agreement will default.

The use of Form 2159, Payroll Deduction Agreement, is recommended for taxpayers who are wage earners, particularly if they are federal employees, or have defaulted an installment agreement in the past.

A wage deduction authorization agreement is an agreement between an employer and their employee where the employee authorizes the employer to deduct wages from their paycheck.

Mandatory deductions: Federal and state income tax, FICA taxes, and wage garnishments. Post-tax deductions: Garnishments, Roth IRA retirement plans and charitable donations. Voluntary deductions: Life insurance, job-related expenses and retirement plans.

If you are a low-income taxpayer, you would qualify for the waiver of your installment agreement fees if you agreed to make electronic payments through a debit instrument (debit payments) by entering into a direct debit installment agreement.

Mandatory payroll deductions. By law, employers must withhold payroll taxes from employee wages and submit them to tax agencies. These taxes are statutory employee deductions from payroll. Failure to pay payroll taxes can lead to penalization. FICA tax and federal income tax are federally-mandated taxes.