To suspend direct debit payments for a Direct Debit Installment Agreement (DDIA), the best way is to contact the IRS directly at least 15 days before the next payment is due. This can be done by calling the IRS and requesting a suspension of the installment agreement. This process is also known as a "hardship" suspension. During the suspension period, interest and any applicable penalties will continue to accrue, and payments must resume after the suspension period ends.
Additionally, taxpayers should inform their bank to stop the direct debit payments. Banks are required to comply with customer requests to stop recurring payments within a specified timeframe. Taxpayers can also refer to resources provided by the U.S. Department of the Treasury and the Consumer Financial Protection Bureau for guidance on stopping pre-authorized debits from their checking accounts.
It is important to note that if payments are stopped, taxpayers must inform their bank to allow the debits to resume at least two weeks before their next payment is due to avoid possible default of the agreement once the suspension period expires.
Sources:
Publication 3598 (11/2023)
Instructions for Form 9465 (11/2023)
Publication 3402 (3/2020)
FS-2023-12
CCA 200139010
