Individuals can complete Form 9465, Request for an Installment Payment Agreement. Use Form 9465 to request a monthly installment plan if you can't pay the full amount you owe listed on your tax return (or on a notice we sent you). When you apply for an installment agreement (IA) through the Online Payment Agreement (OPA) page, you will receive an immediate response that will notify you if your request has been approved or does not qualify through the takeover bid. If you don't qualify for an AI through the OPA, you can also apply for an AI by submitting Form 9465, Request for Installment Agreement, to the IRS.
When you apply for an AI using the form, you will generally receive a response from the IRS within 30 days notifying you if the AI request was approved or denied. An assigned IRS employee may also contact you and request financial records to verify the amount you have requested to pay. If the IRS approves your AI, a setup fee may apply based on your income. If you apply for an AI, the time the request is pending delays or suspends the execution of the initial ten-year collection period.
An AI request is usually pending until an AI can be reviewed and established, or the request is withdrawn or rejected. If the requested AI is rejected, the collection period is suspended for 30 days. Similarly, if you don't meet your AI payments and the IRS proposes to rescind the AI, the collection period is suspended for 30 days. Finally, if you exercise your right to appeal the denial or termination of the IA, the collection period is suspended when the appeal is pending until the date when the appealed decision becomes final.
Taxpayers can also appeal the termination of agreements for 30 days from the date they are terminated. IRC 6331 (k), Levy and Distraint, No fee while certain offers are pending or an installment agreement pending or in effect. Situations in which a continuing salary or tax is maintained during an installment agreement may include, but are not limited to, taxes on mining royalties or intermittent income not included in the income and expense analysis. 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).
If the IRS determines that you cannot pay any of your tax debts due to financial difficulties, the IRS may temporarily delay the collection by stating that your account is currently not collectible until your financial situation improves. Individuals who operate as sole proprietors must meet individual and commercial filing and payment requirements to qualify for installment agreements. Tell the taxpayer that you do not have an outstanding installment agreement based solely on delaying the determination and that you can discuss the issue with the group manager if you wish. For balance due accounts that are not included in current installment agreements, the new tax periods are not affected by the appeal period for installment payment agreements.
If you are a low-income taxpayer but are unable to make e-debit payments when you sign up for a DDIA, your user fee will be refunded once you complete the installment agreement. Fees are imposed on users for services related to the conclusion, restructuring or reinstatement of an installment payment agreement. The Compliance Services Collection Operation (CSCO) is responsible for adding pre-evaluated modules to agreements when they are published and the accounts appear in the Installment Agreement Account List (IAAL). A compromise offer (OIC) is an agreement between you and the IRS that resolves your tax liability by paying an agreed reduced amount.
Taxpayers should be encouraged to pay liability in full to avoid the costs of an installment agreement (IA), including a user fee, the accrual of penalties and interest, and the possible filing of a Federal Tax Lien Notice (NFTL). There is a right to appeal proposed cancellations of installment agreements, the termination of installment agreements and the rejection of requests for installment agreements. There are no minimum or maximum dollar limits for the amount of a liability that can be included in an installment agreement. If the taxpayer applied for an installment agreement and is not up to date with the filing requirements (TC 971 AC 043 entered in error), do not immediately revoke TC 971 AC 043.
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