I'm Melissa Harrison with US Tax Help Association. I want to talk to you a little bit today about if for some reason you find yourself in a situation that you owe the IRS money and you don't qualify for one of the other collection alternatives or a Streamline Installment Agreement (we have information about that elsewhere on the site or you can Google that if you need a little bit more information still), if you're one of those people that because of the amount you owe, or maybe some other factors, you don’t qualify or you might be in a position that you are just needing something more complex, and I know that it sounds kind of daunting, but a more typical installment agreement where you do have to fill out the financial documents, we have some places on the site and we have more information on those financial documents that you will have to submit with this form, but for purposes of this segment I'm just going to go over a little bit on the form that you will have to submit to request that installment agreement amount if you don't qualify for an online installment agreement or a streamline installment agreement. Again check out our site as well as www.IRS.gov to get little bit more information for which one you might qualify for or if you're in doubt go for the Streamline. That's better because you don't want to have to make it any harder than it has to be but if you've been told already you're you know you're not going to qualify for the Streamline then this is the form you're going to need to be familiar with and if you don't have a representative that is taking care of that for you.
So let's look at that form real quick. I'm at the IRS website, www.IRS.gov.
You can do this a lot of ways. You can put in “installment agreement” or lots of different ways if you don't have that form number but because I know that form number we are just going to put it in, Form 9465. You put that in you'll see that come up at the top.
There's lots more information down below, instructions. Feel free to click on that and get all the information you can on it but the form we need is going to be here at the top. You're going to click on it, click on it again at the top when it comes in, current products and that will get you your most current form.
There you go.
So you pull that up.
It's not a difficult form. Again the most difficult part of the form is you know the collection of information and the financial information you're going to have to put with it along with your bank statements for the last three months and stubs. You can see this was last updated in February 2017. They routinely update these forms. So definitely be sure that you're getting the most recent form and that you're using the most recent form. Typically you are going to be able to get that on the IRS website by doing what I just did and putting in 9465.
They should have the most recent version on their site. You will put your name, social security number, if you're married you will put your spouses as well. It is pretty self-explanatory. They do ask you to set up direct debit. If you have a checking account, you put your bank account information in there. If you choose not to do that, you would not do that. To be honest, if you're going to do an installment agreement and if you're not going to do direct draft, you're going to want to be sure that you overnight or set that up in a way that you don't have to worry about it happening. What a lot of people do is they set up an account specific for this day if they're able to do that and just keep the payments for the IRS payments in the separate account. In any event, if you don't choose the direct debit option you’ll definitely want to have something in place to make sure that you have that payment there before the date that is due or you could find yourself in trouble and you're installment agreement being negated, terminated.
So you put the amount you owe there on line 7, the amount of any payment that you're making with the tax return if you're filing them there. Then you'll have your total amount and then you put it there.
They tell you to divide that line 9 by 72 so that 9 is the total amount divide that by 72 months. Then they explain it to you that if the amount on line 10 is less than line 11 and you can't increase that amount you will need to fill out that Form 433F. We give you all that information on how to fill out that form elsewhere on the site. If the amount on line 9 is greater than $50,000 you'll have to fill out Form 433F. Right now, as of August of 2017, they are expanding that and you might qualify for a streamline up to $100,000. I hope it stays in effect. So definitely if you're in that area go for the Streamline. Call the 800 number or contact the taxpayer advocate by filing a 911 with the Taxpayer Advocate. We talk about that all through this site that you can Google that as well. And you can also find information on them by searching in the search bar at www.IRS.gov. You definitely want to see if you qualify for that because they keep testing and changing those parameters and a Streamline is great because you don't have to give all that intrusive financial information. So any way you put that and sign it. It's a pretty short simple form. It's just a matter of whether or not you're going to have to fill out the 433. So you just go through that, follow those directions and submit that in a verifiable way, or you can call the number there on the form 18008291040 and they'll process that for you.
Of course, if you know that you're going to be able to pay the balance in full within 120 days, you don't want to file that form. You can just give them a call at that 800 number and let them know “hey I'm going to pay in 120 days”. They'll notate the account. As long as you do that you're in good shape. So that's a little bit of cursory information on the installment agreement request to talk you through that. Hopefully you are in a situation that you qualify for a Streamlined Installment Agreement and you don't have to submit those financial documents, but if you do then they will go with this 9465.
I hope you find this helpful. Thanks.