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How to pay your taxes – if you can’t pay in full: Installment Agreement (Part III)

How to pay your taxes – if you can’t pay in full: Installment Agreement (Part III)

To be eligible for an Installment Agreement, you must file all required tax returns.

Prior to approving your Installment Agreement request, the IRS may ask you to complete a Collection Information Statement (Form 433F, 433-A and/or Form 433-B) and provide proof of your financial status. If you apply over the phone or at an IRS office, have your financial information available. Bring documentation to support your dollar amounts on the form. For more information, see Publication 1854, How to Complete a Collection Information Statement (Form 433-A).

If they approve your request, they will still charge applicable interest and penalties until you pay the balance due in full and may file a Notice of Federal Tax Lien.

If the IRS rejects your Installment Agreement request, you may request that the Office of Appeals review your case. For more information, see Publication 1660, Collection Appeal Rights.

If you’re unable to meet the terms of your approved Installment Agreement, contact the IRS immediately.

Next week – If you can’t pay in full – apply for an Offer in Compromise

(IRS Publication 594 and IRS.gov) (TTT 09/10/19)