If you`re struggling to pay off your tax debt and need a little extra time to pay, you may consider applying for an installment agreement with the IRS. This is a payment plan that allows you to make monthly payments towards your tax debt, rather than paying the entire amount upfront.
To apply for an installment agreement with the IRS, you`ll need to fill out an installment agreement request form. This form is also known as Form 9465, and it allows you to request a payment plan that works for your specific financial situation.
When filling out the installment agreement request form, there are a few key things to keep in mind. First, you`ll need to provide accurate information about your income, expenses, and assets. This will help the IRS understand your financial situation and determine an appropriate payment plan.
You`ll also need to specify the amount you`re able to pay each month towards your tax debt. This amount should be realistic and sustainable, based on your current income and expenses.
In addition, you`ll need to choose a payment plan option. There are several different options available, including:
– Short-term payment plan: This option allows you to pay off your tax debt in full within 120 days, with no setup fee.
– Long-term payment plan: This option allows you to pay off your tax debt over a longer period of time, typically up to 72 months. There may be a setup fee for this option, depending on your financial situation.
– Offer in compromise: This option allows you to settle your tax debt for less than the full amount owed, based on your ability to pay.
Once you`ve completed the installment agreement request form, you`ll need to submit it to the IRS for review. The IRS typically takes several weeks to process these requests, so it`s important to be patient and follow up as needed.
Overall, applying for an installment agreement can be a helpful option if you`re struggling to pay off your tax debt. By filling out the installment agreement request form and choosing a payment plan that works for you, you can start making progress towards financial stability and peace of mind.