IRS Form 9465 Explained
Table of Contents
Key Takeaways:
- IRS Form 9465, Installment Agreement Request, is a tax form that individuals can file to request an installment plan with the IRS, allowing them to pay back their tax debts in monthly payments instead of one lump-sum payment.
- The IRS Fresh Start Program is a tax debt relief program that helps struggling taxpayers afford their tax bill through programs such as an installment agreement, offer in compromise, currently non-collectible status, and penalty abatement.
- Taxpayers who owe less than $10,000, have filed previous tax returns, and cannot afford to pay the full balance by the deadline, but can afford to pay the funds within 72 months can file IRS Form 9465 electronically for guaranteed approval of an installment agreement plan.
- Taxpayers who owe more than $50,000 can still apply for an installment plan using IRS Form 9465, but they must file by mail and also submit IRS Form 433-F, Collection Information Statement to the appropriate offices.
What Is IRS Form 9465?
IRS Form 9465, Installment Agreement Request, is a tax form used to request a monthly payment plan when taxpayers cannot reasonably afford to pay their full tax liability.
What Are Installment Agreements?
An installment plan is an agreement made with the IRS, allowing the taxpayer to pay their tax balance due in monthly installments instead of paying the full tax debt in one lump-sum payment.
While it is beneficial for taxpayers to set up an installment plan when they cannot afford to pay the amounts of their tax liabilities, it is important to note that they will still have to pay the full tax balance as well as any accrued interest, fees, and penalties on the unpaid tax.
Other Tax Debt Resolution Options
There are many pros and cons to the tax debt relief options provided within the IRS Fresh Start Program, so taxpayers who cannot afford to pay their tax bill should always evaluate which approach best suits their situation.
While an installment plan may be the most appropriate solution within the IRS Fresh Start Initiative for their tax situation, there are also the options of an offer in compromise, penalty abatement, or currently non-collectible status that can help struggling taxpayers afford their tax payments.
Installment Agreement Qualifications
In order to qualify to file IRS Form 9465 to set up an installment plan, they must meet a set of qualifications.
Taxpayers who meet the following requirements will automatically be approved for an installment payment agreement upon filing IRS Form 9465:
- They owe less than $10,000 in taxes.
- They have successfully filed all previous tax returns.
- They have not entered into any installment payment plans within the past five years.
- They cannot afford to pay their full tax balance by the tax filing deadline.
- They are able to pay the tax balance within the next three years or 72 months.
Taxpayers who owe more than $50,000 in taxes can file IRS Form 9465 by mail with original signatures when they submit their income tax return to apply for an installment payment plan. When doing so, they must also submit IRS Form 433-F, Collection Information Statement, to provide the IRS with all the information needed to make a decision.
While it is possible to figure it out alone, taxpayers who owe a significant sum to the IRS, authorized collection agency, or federal government will benefit from receiving help from experts, such as tax lawyers and certified public accountants, to resolve their tax debts. Set up a free consultation with the tax experts at Ideal Tax or contact us by telephone if you have any questions about your eligibility for an installment agreement or the process of applying using IRS Form 9465, Installment Agreement Request.
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