If, in the last 12 months, you have fallen behind with a instalment payment contract, the amount you owe is more than USD 25,000 but not more than USD 50,000, and the amount on line 11a (11b, if applicable) is less than that of line 10, you must complete Part II on page 2 of Form 9465. Entering into a lump-in payment agreement can give you confidence that the IRS is not following any of the harshest collection methods available to it, but interest and penalties will continue to apply to your unpaid tax assets. This is because the payment of your current tax balance is always delayed, even if you try to pay off the bill through a monthly payment plan. Due to the fine and interest charges, it is important to pay as much as possible each month. Otherwise, you will need more time to fully pay off your debts. Low-income taxpayers who are unable to make electronic payments through a DDIA by providing their information on lines 13a and 13b are entitled to reimbursement of their instalment payment fees. If you are a low-income taxpayer and you have entered the box on line 13c, your instalment payment will be refunded after your instalment payment contract is concluded. You can find more information by waiving the user fees and refunds above. To claim the instalment payment agreement, you must not be able to pay tax within 120 days of the tax filing deadline or the date you receive an IRS collection notice, and you cannot currently have a instalment payment plan with the IRS. With a credit due of more than $US 10,000, you can qualify for an optimized payout plan. In the last 5 tax years, you (and your spouse, if you file a joint return), have filed all income tax returns in a timely manner and paid the income tax due and have not entered into a instalment payment agreement for the payment of income tax. The only payment option that qualifies the low-income taxable person to waive the fee for the use of the temperance agreement is his or her consent to make electronic payments via a debit instrument by entering into a DDIA. For more information, see lines 13a, 13b and 13c later.
Is your tax bill too much for you? You can qualify to pay the IRS in installments. Watch this video to learn more about the 9465 instalment payment agreement. If you have additional balances that are not displayed on line 5, read the amount here (even if they are included in an existing tempering contract). . . .