If you’re looking to pay off your tax debt but cannot manage such a high sum all at once, you may find yourself completing IRS Form 9465. Often referred to as the ‘Installment Agreement Request,’ this key form allows you to outline your intentions for covering your tax debt in regular installments.
While an online option exists for establishing a payment agreement, some taxpayers are required to — or prefer to — handle payment terms via Form 9465. Whether this form is a matter of choice or requirement, it behooves you to learn as much as possible before moving forward with the necessary documentation. The basics of Form 9465 are outlined below:
What Information Is Required?
Because Form 9465 determines how much you can and should cover in your future installments, it should include the amount you currently owe. This amount should be highlighted on your tax return or on any related notices you’ve received. You will also want to mention any balances not referenced in your tax return. From there, you can incorporate the amount you intend to pay alongside the request to determine the total amount owed.
Once you’ve determined how much you owe, you’ll need to include an estimate of how much you can pay each month. The IRS recommends making this amount as large as possible to avoid accruing interest or penalties. However, you’ll also want to keep your monthly installments low enough to avoid late payments. Depending on your proposed payment amount, you may be asked to complete Form 433-F: the Collection Information Statement.
Struggling to make sense of IRS Form 9465? You’re not the first — nor will you be the last — person to run into difficulties. The Highland Tax Group can help. Reach out today to learn how we can assist you with this and other key tax forms.