<prompt> Human: Hey Personal Finance. Im a student, and this summer I worked as an intern at a large financial company. I earned a respectable amount of money - but I also had to pay a lot more than I typically do for living expenses. I had a bit left over, but not as much as one would expect. During the school year, I hold a more modest part time job. Anyway, long story short, after plugging everything into turbotax it seems that I now owe nearly 1300 on my taxes. Which isnt an insurmountable amount, but as a student, this would hurt quite a bit. I know that the IRS offers installment payment plans. I definitely plan on pursuing that, but I wanted to know if there are any options I should look in to.Tl;dr: Broke college student. Worked as an intern and was not broke for a bit. Now I owe about 1300 in taxes.  <response>: Be sure to file your 2016 federal return on time.If you can afford to send any payment on time, please do so. Even if its 50, that will be 50 paid timely. If you cant afford to send anything, file the return on time.Assuming you e-file your federal return, you should expect to receive your first balance due notice CP014 in the third week of May.The balance due on the notice generally has your unpaid tax, plus assessments of penalties and interest. The most common penalties are the Failure To File FTF and Failure To Pay FTP. The IRS interest rate is currently 4 per year, compounded daily on the unpaid tax and penalties. The interest rate can be increased or decreased on a quarterly basis. The FTP accrues until the tax liability is paid at 0.5 of the tax per month or part of a month.If you can find a way to pay this balance by the notice due date, you are done. If you cant, you need a payment plan.Most IRS payment plans require you to be filing compliant. This generally means you have filed all required returns within the prior six years. An IRS payment plan protects you from enforced collections actions, such as wage or bank levies or, in most cases, a Notice of Federal Tax LienThe short-term payment plan can be up to 120 days, and it is called a Full Payment Agreement. With this plan, there is no requirement for a fixed monthly payment. The Service calculates the balance due out to 120 days from the request date, and you agree to pay in full by that due date. During the 120 days you could make one payment or 100 payments. There is no fee to request this agreement.If you need more than 120 days, the next payment plan is a formal Installment Agreement IA.With an IA, you agree to a monthly payment amount and a fixed due date. The general rule is the amount due on your notice 72 your minimum payment. There is a one-time user fee to establish an IA, and you may qualify for a reduced fee.When an IA is accepted the monthly FTP rate is generally reduced to 14. With a regular IA, you receive a monthly reminder noticeYou have the option of sending payments by mail, and there are many electronic payment options availableYou can also request a Direct Debit Installment Agreement DDIA by providing your bank routing and checking account number. The user fee for a DDIA is generally reduced if you qualify. There are no monthly reminder notices issued on a DDIA.Missed payments, late payments, payments with non-sufficient funds, or a new balance due can result in a default status. There is generally an 89 fee to reinstate any defaulted agreement.Any refunds you claim on future federal and possibly state tax returns will be offset to the unpaid balance due. If an offset occurs, you will be sent a noticeYou can set up new payment plans at IRS.gov Online Payment Agreement Have a copy of your return and your notice handy when you access the system. Requesting an Installment Agreement of any kind using OPA generally results in the lowest possible user fee.You can call 1-800-829-0922 M -F 7am - 7pm local time and speak with a representative. They will ask some verification questions, research your account, and provide your payment options. Have a copy of your return and a copy of the notice handy when you call. You can make an appointment to visit your local Taxpayer Assistance Center TAC for face-to-face help with an IA. All TACs now require appointments for face-to-face service.Source at IRS.gov 