Complete Form 9465 Installment Agreement Request
Hello, I`m Jill from TurboTax with some information about paying your income tax bill in monthly installments. If you owe more than 50,000 $US, you cannot submit electronically and you must return a completed IRS 9465 form on paper with original signatures. You can do this by affixing it to the front of your return at the time of filing. Individuals who are already making payments under a instalment payment agreement with the IRS are not permitted to use Form 9465 and should contact the IRS at 1-800-829-1040 if they need to make arrangements for the payment of additional amounts. Among the people who should also call instead of filing Form 9465 are those who are bankrupt and want to make an offer of compromise. Typically, installments require identical monthly payments, based on the amount of taxes due, the amount of money the IRS can collect at the same time, and the amount of time they can recover taxpayers` money. Instalment payment agreements are not an ideal way to pay a tax debt, as the taxpayer is always liable for penalties and interest during the term of the contract. The IRS calculates a daily interest rate equal to the federal short-term funds rate plus 3%, calculated quarterly. In addition to the calculated interest, the IRS will also assess a 0.5% non-payment penalty on unpaid assets per month or part of a month, up to a maximum of 25%. For taxpayers who file in a timely manner and have a timely plan, the penalty drops to 0.25% for each month the payment plan is in effect.
The user fee to apply for a tempe contract with Form 9465 is $225 with payment by cheque and $107 with payment by direct debit from your checking account. To qualify for a user fee reduction, you can request a instalment payment agreement with the IRS online payment agreement tool. The fee is $149 for cheque payments and $31 for direct debit payments. You can access Form 9465 from the IRS website or by phone at 1-800-829-1040. Note: A payment can only be made electronically if Form 9465 is filed with 1040. . . .