There are millions of Americans that owe money to the U.S. government each year. The Internal Revenue Service (IRS) defines any money that is owed as “back taxes”.
Taxpayers must pay back taxes for a variety of reasons. In many instances, the taxpayer is an independent contractor or small business owner that must cover back taxes that were not covered in quarterly estimated payments. Meanwhile, others miscalculate their income taxes or fail to submit a return altogether.
Regardless of your circumstances, back taxes are a scary term for citizens. However, you do not need to feel intimidated or pressured by the Internal Revenue Service to pay back money owed immediately thanks to IRS Form 9465.
It is vital that you file IRS Form 9465 if you owe money to the IRS that you are unable to pay back in full. There are many advantages to filing IRS Form 9465 and working with a tax professional can make the process much more straightforward.
IRS Form 9465 is one of many forms available to the public that is available through the Internal Revenue Service. It is an official document where the taxpayer concedes that they are unable to pay back taxes in full, and thus must establish a monthly installment payment plan with the IRS.
The IRS refers to its taxpayer payment assistance plan as an IRS Installment Agreement. It is comparable to other monthly premiums you pay for credit cards or auto loans only the interest rate is far more reasonable.
In most situations, the IRS will work with taxpayers to establish an Installment Agreement as opposed to going AWOL when it’s time to pay back taxes. Taxpayers that owe less than $10,000 automatically qualify for an IRS payment plan.
IRS Form 9465 is available through the official website of the Internal Revenue Service. Those that owe less than $50,000 may be able to avoid submitting IRS Form 9465 so long as they complete the application for the online payment agreement (OPA). You may also want to contact a local tax professional prior to submitting IRS 9465 Form.
Why?
Levy & Associates Tax Consultants has decades of experience helping clients recover from back taxes. While setting up an Installment Agreement with the IRS is often the most appropriate avenue for taxpayers that owe less than $10,000 – other solutions exist.
We may be able to reduce your tax debt through an Offer in Compromise (OIC) or another type of settlement. Contact Levy & Associates today for a free consultation at 1-800-TAX-LEVY.
Back taxes are an unfortunate reality for millions of Americans. Thus, if you owe money to Uncle Sam, do not delay (or ignore) your taxes because it will only amplify the problem. Instead, consider applying for an Installment Agreement to cover the back taxes in monthly payments.
IRS Form 9465 makes it simple to put in a request for a monthly payment plan. In general, every request under $10,000 in back taxes is automatically approved. Furthermore, most taxpayers that owe less than $50,000 can apply for a payment plan online.
Nonetheless, there is nothing wrong with doing things the old-fashioned way, as IRS Form 9465 is easy to complete and file. Simply follow the directions on the form, paying special attention to sections 11a and 11b.
The IRS Installment Agreement allows taxpayers to enter the amount that they can afford to pay back each month. There is freedom to dictate how much and how long it will take to pay back taxes. Notwithstanding, keep in mind that you will be charged penalties and interest so try to absolve yourself of the debt as soon as possible.
The Internal Revenue Service traditionally approves new Installment Agreements within 30-90 days. It depends on if you file IRS Form 9465 through standard mail or proceed through the online payment agreement (OPA).
Taxpayers do not need to stress too much because it is standard for the IRS to approve any payment plan request under $10,000. The IRS has since expanded to accommodate taxpayers that owe up to $50,000.
We suggest meeting with a tax professional at Levy & Associates before you make that final determination. Individuals that owe substantially more in back taxes may want to pursue another tax resolution such as an Offer in Compromise. Contact us today to learn more about your financial options.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.