For various reasons, you may not be able to pay your federal
individual income tax in full. Do not delay filing your
tax return because you are unable to pay in full. If your tax
return is not filed on time, you may have to pay a
"failure-to-file" penalty, in addition to a
"failure-to-pay" penalty, and interest.
If you can't pay in full, file your tax return on time
and attach either a completed Form
9465, Installment Agreement Request, or your own
written request for a payment plan, to the front of your return.
(Specify the amount you can pay and the day you wish to make
your payment each month.) You should pay as much as you can with
the return, (to lower the interest and penalty charges). If you
have already filed your return and have received a notice, or
bill, requesting payment, you may attach a completed Form 9465
or your own request to the notice and mail it in the envelope
provided. The IRS will let you know, usually within 30 days,
whether your request is approved, denied, or if additional
information is needed. If approved, a one-time user fee of $43
will be charged.
Before requesting an installment agreement, you should consider
other less costly alternatives, such as a bank loan. The
interest rate a bank charges may be lower than the combination
of interest and penalties imposed by the Internal Revenue Code.
Remember, penalties and interest will be added to the balance
due even if an installment agreement is approved.
It is important not to ignore an IRS notice. If you neglect
or refuse to make payment or other arrangements to satisfy your
obligation in full, we may take enforced collection action
(filing a notice of federal tax lien, serving a notice of levy
or offset of a tax refund).
Select Topic
201 for information about "the collection
process." For additional information regarding alternative
methods of payment, or the nearest location to receive
assistance, please check How
to Contact Us or call 1-800-829-1040.
If you would like more information on "your rights as a
taxpayer," how to make arrangements to pay your bill, enter
into an installment agreement, and to inquire about the
implications when you take no action to pay, download Publication
594, Understanding the Collection Process, and Publication
1, Your Rights As a Taxpayer, or you may request
copies by calling 1-800-829-3676.
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