IRS News

Installment Agreement Options on IRS Website

The IRS is offering new help for taxpayers interested in paying their income taxes on an installment basis. The IRS website now has an interactive calculator that helps you calculate a monthly payment amount and then prints out an installment agreement form for you to file.

The new option is for individuals who have already filed their returns and are not

already paying taxes under an installment agreement. It is available through the Interactive Installment Payment Process link on the Tax Info for You page of the IRS website, http://www.irs.ustreas.gov

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Taxpayers who qualify for a streamlined agreement - generally, taxpayers with a tax debt of not more than $25,000 that they can pay off within five years - will learn how long their proposed monthly payments would last. Taxpayers who do not qualify for a streamlined agreement can compare their monthly expenses to the amounts allowed under the IRS's Collection Financial Standards to help determine an appropriate tax payment.

You may print out Form 9465, Installment Agreement Request, from the IRS website (with the allowable expense worksheet, if used) and mail it to the IRS for review and approval. The web site does not store or transmit any personal data.

If you are already paying back taxes under an installment plan, you must pay all subsequent taxes on time or you will risk defaulting on your agreement. If you already have an installment agreement and are unable to make a future tax payment, you should call the IRS at 1-800-829-1040. 0