Setting up an Installment Agreement with the IRS

To enter into an installment agreement with the IRS there are several moves that you need to make. While there is nothing difficult about setting up an installment agreement, the first time you do this you may be a bit confused about what is going on. Fortunately, with the right information you can easily move on and have your installment agreement setup and in place soon enough.

First things first, you need to know how much money you owe. If you owe the IRS less than $25k you can setup your installment agreement online or by phoning the number included on your notice of payment. Additionally, you can also use Form 9465 if you would rather fill out a paper document and mail it to the IRS. All of these options are easy enough, and can be handled by even the most inexperienced taxpayer.

What if I owe the IRS more than $25k? In this case, you may still qualify for an installment agreement but the way you set it up is going to be different. Form 433F, Collection Information Statement, should be mailed to the IRS along with Form 9465.

Once you have submitted the proper information you will receive notice in the mail from the IRS as to whether or not your terms have been accepted. If not, there is as good chance that you will be asked to modify your terms so you can move forward. Be sure to keep an eye out for this notice as it is very important to your future.

Setting up an installment agreement can be simple if you follow the proper procedure outlined by the IRS. The most important detail is how much money you owe. From there, if you file the proper forms you will hear from the IRS soon enough on your acceptance.

IRS Installment Agreement
More information on installment agreements and other IRS payment methods available