File Form 9465 to request an installment agreement

If you cannot full pay the IRS the amount you owe within 120 days, you can request a monthly installment agreement by filing Form 9465. Form 9465 can be used if you are an individual who owes individual income taxes, employment taxes related to a sole proprietorship that is no longer in business, or trust fund recovery penalties. Form 9465 can be filed with your tax return, or you may file Form 9465 by itself in response to an IRS notice.

Or a streamlined installment agreement?

Based on the amount of tax you owe, you may qualify for a streamlined installment agreement. The maximum length of a streamlined installment agreement to pay your tax balance in full is 72 months. If you qualify for a streamlined installment agreement, you can establish the agreement without providing your financial information to the IRS.

If you cannot afford to pay your balance in full over 72 months, you will need to provide the IRS with financials to be granted approval for a lower payment amount. This amount will be determined based on your income and approved IRS expenses. Approved IRS expenses include food, clothing, housing, utilities, medical, and other allowable expenses. Form 433-F, Collection Information Spreadsheet will also need to be submitted if you are requesting an installment agreement for less than the streamlined payment amount.

Or a guaranteed installment agreement?

In some cases, you may qualify for a guaranteed installment agreement. You are eligible for a guaranteed installment agreement if all of the following apply: the total tax you owe is less than $10,000; during the past 5 tax years you have filed all returns on time, paid all balances due, and have not entered into an installment agreement; you agree to pay the amount you owe within 3 years and comply with all tax laws during the agreement; and you are financially unable to pay the tax balance in full when it is due. If you’re asking yourself; How much do I owe the IRS? There is a free resource to determine your amount and any un-filed returns.

How to make installment agreement payments?

You can make your monthly installment agreement payments by check, money order, credit card, direct debit, or payroll deduction. The setup fee for an IRS installment agreement is $120, or $52 if you make direct debit payments. If your income is below a certain level, you may qualify for a reduced setup fee of $43.

If you do not make timely payments or owe additional taxes on subsequent returns your installment agreement with the IRS may be defaulted. The IRS may take enforcement actions against you such as levy action or filing tax liens to collect the entire tax balance you owe.

Don’t forget to keep updating your installment agreement

After your installment agreement has been approved by the IRS you may submit a request to modify or terminate your installment agreement at any time if your financial situation has changed and you are no longer able to pay your monthly installment amount. Any new request must be submitted for review and accepted by the IRS.

Which program do you qualify? Contact us
To find out if you qualify for an installment agreement, or another program, contact us at (877) 829-2455.