What forms do I need to fill out for an IRS payment plan?

Do you need to file an IRS payment plan? There are a few forms you have to fill out before you can get approved. Which forms you file exactly depends on how much you owe on your taxes.

Keep in mind paying how much you owe in full will avoid any interest or penalties. However, sometimes this just isn’t possible. If so, first calculate how much you will owe the IRS.

If you owe:

Under $25,000
Those filing for an IRS payment plan who owe under $25,000 have it easier than those who owe more. All you have to do is fill out one form, form 9465. This is known in formal IRS terms as the Installment Agreement Request.

Again, this is a rather simple form. You’ll need your personal information such as your Social Security Number, address, and phone number. Now just enter the name of your bank, your employer, and how much you owe and wish to pay each month. Try to make the payments as much as possible to avoid more interest. And keep in mind that the IRS will only agree to installment agreements that will pay off your full tax bill within three years.

If you are already making payments on an installment agreement, you cannot file this form. Also, if you are able to complete your payments in 120 days or less, there is no need to file Form 9465 for an IRS payment plan.

Over $25,000
The 433-F Form is much more complicated than the Form 9465. Because you owe so much money, the IRS will want to know every last detail about your income and payments out. You will have to report every bank and savings account you have, and should not forget to include real estate and other assets.

This is all to determine if you are able to make payments or, if you go in default, what assets they can seize. Even after providing all this information, you may not actually be approved for an IRS payment plan, and it might be a good idea to retain a lawyer if you are in real tax hot water.

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