Setting up a payment plan with the IRS is quite simple. Either you or your tax advisor can arrange an IRS instalment payment agreement to settle your tax debt in smaller, more manageable steps. In general, if the total amount, you must complete lines 13a and 13b, but not more than $50,000, either complete lines 13a and 13b and agree to pay by direct debit, or (2) control box 14 to make your payroll payments and attach a signed form 2159, Payroll Deduction Agreement. A wage withdrawal agreement is not available if you submit Form 9465 electronically. If you have additional balances that are not shown on line 5, read the amount here (even if they are included in an existing tempe contract). Any adjustment or other fee which is not indicated in a declaration or notification must appear on this line. If the total amount you owe does not exceed $50,000 (including all amounts you owe from previous years), you do not have to file Form 9465. You can request a instalment payment contract online for a reduced fee. For more information, see the online application for a instalment payment contract and other payment plans later. If you are a low-income taxpayer and agree to pay by direct debit (from a checking account), you are entitled to a waiver of the user fee for the instalment payment. A low-income taxpayer who is unable to make electronic payments through a debit instrument by entering into a DDIA is entitled to a refund of the reduced user fee of USD 43 after the conclusion of the instalment payment agreement. See line 13c, later, for more details.
To claim the instalment payment agreement, you must not be able to pay tax within 120 days of the tax filing deadline or the date you receive an IRS collection notice, and you cannot currently have a instalment payment plan with the IRS. In line 11a, enter the amount you can pay each month. Make your payments as large as possible to limit interest and penalties. The fee remains valid until you have paid it in full. If you have an existing instalment payment contract, this amount should represent the entire amount of your proposed monthly payment amount for all your commitments. If no payment amount is shown on line 11a (or 11b), a payment is intended for you by dedividing the balance due by 72 months. If you do not select the box on line 13c (and do not enter the information in lines 13a and 13b), you indicate that you are able not to make electronic payments by creating a DDIA. Therefore, your user fee will not be refundable after the conclusion of your instalment payment contract. If you choose to pay your monthly taxes by electronic withdrawal of money, you must also provide your bank account and routing numbers. The IRS guarantees acceptance of your tempered plan application if, within the last five tax years, all of your tax returns have been filed and all taxes have been paid on time and you have not received a payment agreement in instalments. In addition, your application for the instalment payment agreement must be made out of necessity and not preference, and your current tax debt must be lower or $10,000. Use Form 9465 to request a monthly instalment payment contract (payment plan) if you are unable to pay the full amount listed on your tax return (or in a message we sent you).
Most instalment payment agreements meet our optimized tempetaux payment criteria. The maximum duration of a streamlined agreement is 72 months. In some circumstances, you may have to pay longer in time or make an agreement on an amount lower than the amount of tax you owed….