If you’re in a position where you owe the IRS and can’t pay the full amount, you may want to apply for an installment agreement. This type of tax settlement will allow you to pay off what you owe in monthly installments for up to 60 months.
Not all taxpayers are eligible for an IRS installment agreement. Before you apply for one, you should evaluate whether you’re likely to meet the requirements. For starters, you need to have already filed your tax return, and you cannot have unfiled returns from previous years. Also, if you pay estimated taxes because you are self-employed or for any other reason, you need to be up to date on all your estimated tax payments. If you meet these requirements, then you’re likely eligible to apply for an installment agreement.
Making the Application
To apply for an installment agreement, you need to fill out Form 9465. You can fill out and mail in a paper application, or you can go online to fill out the form if you owe $25,000 or less, including tax penalties and interest. It normally takes less than 30 days to get a response from the IRS. If your request is not approved right away, the IRS may inform you that more information is necessary.
If you need guidance or advice regarding installment agreements with the IRS, feel free to get in touch with Taxation Solutions, Inc. We’ll work hard to help you work out an agreement with the IRS that meets your needs!