If you`re dealing with tax debt that you`re unable to pay in full, an installment payment agreement with the Internal Revenue Service (IRS) may be a viable option. By filling out the IRS installment payment agreement form, you can arrange to pay your tax debt in manageable monthly payments. Here`s what you need to know about this form and how to use it.
What is an IRS Installment Payment Agreement Form?
An IRS installment payment agreement form is a document that taxpayers fill out to request a monthly payment plan for their tax debt. This form is also known as Form 9465, Installment Agreement Request. The IRS uses the information provided on the form to determine whether or not you qualify for an installment plan and how much you should pay each month.
How to Fill Out the IRS Installment Payment Agreement Form
Before filling out the form, you should gather all the necessary information, including your tax return and any notices you`ve received from the IRS. You`ll also need to decide on a monthly payment amount that you can afford to make.
Here are the steps you need to follow to fill out the form:
1. Provide your personal information, including your name, address, and Social Security number.
2. Indicate the tax year(s) that you owe taxes for.
3. Calculate the amount that you owe, including penalties and interest.
4. Indicate the maximum monthly payment you can afford to make.
5. Choose the day of the month on which you want the payment to be due.
6. Indicate whether you want to make automatic monthly payments from your bank account or by payroll deduction.
7. Explain why you`re unable to pay your tax debt in full and provide documentation to support your claim.
8. Sign and date the form.
After you`ve filled out the form, you should mail it to the IRS at the address indicated on the form. Alternatively, you can submit the form online using the IRS Online Payment Agreement tool.
Things to Keep in Mind
Before filling out the IRS installment payment agreement form, keep the following things in mind:
– You should file all of your tax returns before filling out the form.
– You should pay as much of your tax debt as possible before requesting an installment plan.
– The IRS charges interest and penalties on unpaid tax debt, so your total debt may continue to grow even if you`re on an installment plan.
– If you default on your installment payments, the IRS can take legal action to collect the debt, including garnishing your wages or seizing your property.
In conclusion, the IRS installment payment agreement form can be an effective tool for managing your tax debt. By filling out the form and entering into an installment plan, you can avoid more severe consequences, such as wage garnishment and property seizure. It`s important to calculate the monthly payment that you can afford to make and to understand the potential consequences of defaulting on your payments. With this information in mind, you can take the necessary steps to get your tax debt under control.