If you`re behind on your taxes, an installment agreement with the IRS can help you avoid penalties and interest on unpaid taxes. The process may seem daunting, but it`s fairly straightforward.
One of the first steps in setting up an installment agreement is filling out the proper form. In this case, you`ll need to complete IRS Form 9465.
Form 9465 is used to request a monthly installment plan if you can`t pay the full amount you owe in one lump sum. The form asks for basic personal information such as your name and social security number, as well as details about your tax liability.
You`ll also need to indicate how much you`re able to pay on a monthly basis. Keep in mind that the IRS will want to see that you`re making every effort to pay your debt in full, so be sure to propose a reasonable monthly payment amount that you can stick to.
In addition to Form 9465, you may need to provide additional documentation to the IRS, such as proof of income, expenses, and assets. This information will help the IRS determine how much you can afford to pay each month.
Once you`ve completed Form 9465 and submitted any necessary documentation, the IRS will review your request and determine whether to approve your installment agreement.
There are several different types of installment agreements available, depending on the amount you owe and your financial situation. If you owe less than $10,000 and can pay off your debt within three years, you may be eligible for a guaranteed installment agreement. Otherwise, you may need to negotiate a more complex agreement with the IRS.
Keep in mind that it`s important to stay current on your installment agreement payments. If you miss a payment, the IRS can revoke your agreement and begin collections actions against you.
If you`re struggling to pay your taxes, don`t hesitate to reach out to the IRS for help. An installment agreement can be a great option to help you get back on track financially. Just be sure to fill out Form 9465 completely and accurately, and provide any additional documentation that`s requested.