Wednesday 25 September 2019

How to Apply for The IRS Installment Agreement to Pay the Tax Liability?

In the event of not paying the tax on-time, you have an option to choose an installment agreement that will allow you to make back tax payments in monthly installments. You can apply for this agreement by using the form 9465 that has been issued by internal revenue service to help you for tax fulfillment. You can use the IRS payment plan form to request for the installment agreement if you do not pay the previous year taxes to the government. You can use this form to apply for the monthly payment options like a home mortgage to the bank or mortgage lender to clear the debt amount.

• In the IRS installment agreement, you are allowed to make payments within the 36 or 72 months periods. The 36 months payment period is known as a guaranteed payment plan and 72 months payment program known as a streamlined payment plan. You can opt for the guaranteed plan if you owe less than 10000 or equivalent and can choose streamlined for 50000 dollars of tax liability. By using the simple IRS payment plan form which is known as form 9465 you can submit the request online to the tax department and can start paying the debt in monthly installments after getting the approval.

• You are the eligible candidate to download, fill and submit the IRS installment payment form online if you have filed the income tax returns during the period of past 5 years and pay the due tax amount. Filling and submitting the form is a pledge from you to pay them back taxes with full sincerity to the internal revenue service and you should also need to mention the mode of payment through the direct debit from a bank account, with the money order and account payee check, or through the payroll deductions.

• After submitting the application for the IRS installment agreement by filing the IRS installment payment form, the department will assess your application upon receiving and let you inform in 30 to 60 days about the application that it has approved or denied. If your application has been approved then you will get a notice that will provide you with the detailed terms of the agreement and also the fee to submit. You will be noticed every month by the IRS about the balance left for the back taxes and the due date for the next payment. You will also get an annual statement for the payments you have made to the internal revenue service.

• You are also required to submit the form 433-F if the unpaid tax amount is equivalent to or more than 50000 dollars. It is a two pages form that will include the details of your job profile, income proofs, living expenses, and assets. It is used by the IRS to determine your financial capability to pay the due taxes that you have to pay with an installment agreement. Filling this form is necessary along with form 9465 to get easy approval from the IRS to clear the tax debt.

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