If you mail Form 9465, the IRS will respond to your request generally within 30 days, but it may take longer during tax filing season. Installment agreements using direct debit and payroll deduction allow you to make timely payments automatically and reduce the possibility of default. The IRS generally schedules appointments to file a dispute with the CDP between 8 and 10 weeks after you file the request. The average total appeal resolution time for CDP hearings is 8 and a half months.
If you need help creating a strategy to address your tax problem, visit the Jackson Hewitt Tax Resolution Center to see the various ways we can help you. Jim Buttonow, CPA, CITP, is the Senior Vice President of Post-Filing Tax Services at Jackson Hewitt. He has been a leader in helping taxpayers and tax professionals resolve tax issues with the IRS, where he worked for 19 years in various compliance positions. Prior to his current position, Jim's consulting practice focused on the areas of tax controversy and tax administration, which included leading the development of tax problem software products for tax professionals, testifying before Congress, advocating for the transparency and efficiency of the IRS, and proposing innovative large scale solutions for taxpayers and tax professionals.
Jim is also the author of the Tax Problems and Solutions Manual, a publication intended to help tax professionals work more effectively on post-tax issues and to resolve their clients' most common tax problems. In general, you can choose what you pay each month. That is, the IRS will ask you how much you can pay. However, if you have a long-term repayment plan, you should choose a payment amount that pays off your debt within 72 months.
Complex IRS collection agreements (currently not collectible and agreements that involve determining your ability to pay). Disputes will add more time to resolve the problem, since you'll need to provide the IRS with more information or request an appeal to establish the agreement you want. When you apply for a payment plan (installment agreement), with certain exceptions, the IRS is generally prohibited from charging and the IRS's time to collect is suspended or extended while an installment agreement (IA) is pending. Every year, millions of taxpayers must obtain an installment agreement, an extension of payment, or another more complicated collection alternative from the IRS other than a full payment.
In most cases, you have two options for making your payments once you've signed a long-term payment plan or installment agreement with the IRS.
IRS installment agreement fees are also reduced if you choose to
automatically withdraw payments from a checking or savings account by direct debit. If the IRS system identifies you as a low-income taxpayer, the online payment agreement tool will automatically reflect the applicable rate. And if you need time to pay the remaining balance, use the IRS Online Payment Agreement Request to set up a payment plan or installment agreement.File all required tax returns on time and pay all taxes in full and on time (contact the IRS to change your current agreement if you can't). Now, due to TT FAKE FEATURE, I was penalized and forced to apply for the installment plan again through the site. The opening fees for long-term installment agreements are reduced if you apply online rather than by phone, mail, or in person. Pay by direct debit (automatic monthly payments from your checking account), also known as an installment direct debit agreement (DDIA).
Submit your request online through the online payment agreement tool or by phone or by mail by submitting Form 9465, Request for an Installment Agreement. And if you qualify online, you'll receive immediate confirmation that your payment plan or installment agreement has been approved. If you are a low-income taxpayer, you will not be charged the user fee if you agree to make direct debit payments through an installment direct debit agreement (DDIA). The total cost of IRS installment agreements includes accrued penalties and interest until the balance is paid in full.
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