IRS Installment Payment Agreements

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What is an Installment Payment Agreement?

IRS Installment Payment Agreements

When you are unable to pay your taxes in full, you may ask the IRS for an installment plan. You can request this plan either via the phone or by submitting a tax form (Form 9465). There is a $43 fee for this service. This amount will be deducted from your first payment. If you decide to start the process via phone, simply call the IRS at 800-829-1040. You will need your social security number (or taxpayer identification number), what tax year you are calling about, and what type of tax form you filed (for instance, 1040, 1040A, or 1040EZ). Let the IRS representative know what monthly payment figure you can afford, and they will update your records with the figure. The representative will then tell you when your first installment payment is due.

The IRS will give you options for payment (such as through mail or a direct debit). Then, they will send you the needed paperwork. Be sure to complete and fill this out promptly. Once you are set up in the system, you can change your method of payment through the IRS website. If you do not want to call the IRS, you can also submit Form 9465 (Installment Agreement Request) along with your 2006 Form 1040, 1040A, or 1040EZ. Also include a check for an amount you can afford. The IRS will then review your information and decide if they agree with your proposal. You will receive an IRS Notice of their determination. Remember that even though you may enter into an installment arrangement with the IRS, you will be assessed interest on your unpaid tax liability.

   

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