Can’t Pay Your Taxes in Full? Consider Filing IRS Form 9465

Filing Form 9465, also known as the "Installment Agreement Request," allows taxpayers to request a payment plan with the Internal Revenue Service (IRS) to pay off their tax debt in installments. This can be a helpful option for taxpayers who are unable to pay their tax debt in full at the time it is due, but who still wish to avoid more serious consequences such as wage garnishment or bank levies.

Here are some benefits of filing Form 9465:

1. Pay off debt in smaller, more manageable installments: Instead of having to come up with a large lump sum payment to pay off the entire tax debt at once, a payment plan allows taxpayers to pay their debt in smaller installments over time. This can make it easier to budget and manage their finances.

2. Avoid enforcement actions: If a taxpayer is unable to pay their tax debt in full, the IRS may take enforcement actions such as wage garnishment or levying their bank account. Filing Form 9465 and entering into a payment plan can help avoid these actions, as long as the taxpayer stays current with their installment payments.

3. Lower penalties and interest: The IRS charges interest on unpaid tax debt and may also impose penalties. By entering into a payment plan and paying off the debt in installments, taxpayers may be able to reduce the amount of interest and penalties they are charged.

To be eligible to file Form 9465, taxpayers must meet the following requirements:

1. The taxpayer must not have any open bankruptcy proceedings.

2. The taxpayer must not have a prior payment plan in place with the IRS.

3. The taxpayer must be current with all tax filing requirements.

4. The taxpayer must agree to pay off their debt within six years (partial payments can be possible).

There are two main types of payment plans available through Form 9465: a streamlined installment agreement and a regular installment agreement. A streamlined installment agreement is available to taxpayers who owe less than $10,000 and can pay off their debt within 72 months or less. This type of agreement does not require the taxpayer to provide financial information to the IRS. A regular installment agreement is available to taxpayers who owe more than $10,000 or who need more than 72 months to pay off their debt. This type of agreement requires the taxpayer to provide financial information to the IRS and may require the taxpayer to agree to have their tax returns garnished until the debt is paid off.

A tax attorney can be helpful in a number of ways when it comes to filing Form 9465 and entering into a payment plan with the IRS. A tax attorney can:

1. Review the taxpayer's financial situation and help them determine which type of payment plan is best for them.

2. Assist with gathering and organizing the financial information needed for a regular installment agreement.

3. Negotiate with the IRS on the taxpayer's behalf to try to get a lower monthly payment or a longer repayment period.

4. Help the taxpayer understand their rights and options under the payment plan, and ensure that the IRS is holding up its end of the agreement.

5. Represent the taxpayer in case of any issues or disputes that may arise during the repayment process.

In summary, filing Form 9465 and entering into a payment plan with the IRS can be a helpful option for taxpayers who are unable to pay their tax debt in full at the time it is due. A tax attorney can assist with the process and help ensure that the taxpayer's rights are protected during the repayment process.

If you need assistance with your tax debt, a Tax Attorney at Safeguard Law, PLLC can help you.