Yes, direct debit payments will continue to be deducted from your bank for Direct Debit Installment Agreements (DDIAs) during the suspension period. The IRS has confirmed that it will continue to debit payments from the bank for DDIAs even during the suspension period. However, taxpayers who are unable to comply with the terms of their Installment Agreement may suspend payments during this period, and the installment agreements will not default due to missing payments through July 15, 2020. If necessary, taxpayers should contact their bank directly to stop payments if they prefer to suspend direct debit payments during the suspension period.
Sources:
CCA 199921042
Notice 2020-20
Notice 2020-18
CCA 199920005
Instructions for Form 9465 (11/2023)
