If you owe money to the IRS but can`t afford to pay it all at once, you may be able to set up an installment agreement. This allows you to make monthly payments towards your tax debt over time. But where do you send your installment agreement request?
First, it`s important to note that you can`t just call the IRS and set up an installment agreement over the phone. You`ll need to fill out a form and send it in. The form you need to use depends on how much you owe.
If you owe $50,000 or less, you`ll need to use IRS Form 9465, Installment Agreement Request. This form can be filled out online or printed and mailed in. If you use the online option, you`ll receive an immediate response regarding whether your request has been approved or denied.
If you owe more than $50,000, you`ll need to complete Form 433-F, Collection Information Statement. This form asks for more detailed financial information than Form 9465 and is used to help the IRS determine your ability to pay. You`ll also need to fill out Form 9465 to request the installment agreement.
Once you`ve filled out the appropriate form(s), you`ll need to send them to the IRS. The address you should use depends on where you live and which form you`re using. The IRS website has a tool that can help you find the correct address based on your location and the form you need to send.
It`s important to note that there may be fees associated with setting up an installment agreement. These fees will be added to your balance and may increase the total amount you owe over time.
If you`re having trouble paying your tax debt, setting up an installment agreement can help you avoid more serious consequences like wage garnishment or tax liens. Just make sure you fill out the right form(s) and send them to the correct address to ensure your request is processed correctly.
