Taxpayers wishing to pay off a tax debt through an installment agreement, who owe more than $25,000, are generally required to complete one of the Collection Information Statements listed below. Additionally, taxpayers need to be current with all taxes and delinquent returns in order to be eligible for an installment agreement.
When determining the amount of an Installment Agreement, the IRS reviews the completed Collection Information Statement and determines the taxpayer’s ability to pay. It is important to note that the IRS has national and local standards for many of the expenses listed on these forms. Often, collection personnel at the IRS will persuade taxpayers who are not familiar with these forms or the Internal Revenue Manual that certain expenses they are claiming are not allowed. As a result, many taxpayers will find the amount the IRS is saying they can pay is out of line with their current budgets. An experienced representative can often times negotiate a payment arrangement that is much more reasonable.
For taxpayers owing less than $25,000 (of tax, interest, and penalties), taxpayers can use the Online Payment Agreement (OPA) or call the number on the IRS bill or notice. Additionally, a taxpayer can complete Form 9465, Installment Agreement Request and mail it to the address on the bill.
worried about the irs?
You don’t have to worry about how your tax debt will affect your future, our award-winning Maryland tax attorneys are here to walk you through it.