| Do you owe money to the IRS? Are you worried that | | | | more than $25k will still be able to use a payment plan, |
| you cannot pay in full? While you may not have | | | | but will have to include Form 433-A (collection |
| enough money in the bank to pay your entire tax bill, | | | | information statement) along with Form 9465. Yes, you |
| this does not mean that you have to hide from the | | | | do have to provide the IRS with some information if |
| IRS. Instead, you can setup a payment agreement | | | | you are interested in setting up a payment plan, but in |
| which will allow you to pay your debt soon enough. | | | | the long run it is well worth the time and effort. It gives |
| Simply put, a payment agreement gives you the | | | | you the chance to save money, while also paying |
| chance to get rid of your debt over the period of | | | | back what you owe over the long term - instead of all |
| several months or years. | | | | at once. |
| But can I save money by setting up a payment plan? | | | | Those who want to learn more about setting up a |
| When you setup an installment agreement with the | | | | payment plan and saving money should consider hiring |
| IRS you are going to reduce your failure to pay | | | | a tax professional. There are many finer details of this |
| penalty from.5% on taxes owed to.25%. In other | | | | process that may not add up in your mind. When you |
| words, you will effectively cut your penalty in half. This | | | | hire a professional you can rest easy knowing that |
| may not sound like a big deal, but if you have a large | | | | every detail will be taken care of. |
| balance due it can save you quite a bit of money. | | | | In closing, you will definitely save money by setting up a |
| If you owe less than $25k setting up a payment plan is | | | | payment plan. If you have the ability to save, you might |
| very easy. You can use IRS Form 9465 or the online | | | | as well do so. |
| payment agreement application. Those who owe | | | | |