New Installment Agreement Aid on IRS Web Site

WASHINGTON - The Internal Revenue Service has a new aid for those interested in paying their taxes on an installment plan. Its Web site now has an interactive calculator that helps a person figure the monthly payment amount, and then prints out an installment agreement form for the taxpayer to file.

“This is yet another way we’re improving our services and helping people meet their tax obligations,” said IRS Commissioner Charles O. Rossotti. “We should have less need to ask taxpayers for additional information, thus speeding our review process for their installment requests.”

The calculator is for individuals who have filed their returns and are not already paying taxes under an installment agreement. It is available through the “Interactive Installment Payment Process” link on the “Tax Info for You” page of the IRS Web site, www.irs.ustreas.gov.

Those qualifying for a “streamlined” agreement -- generally, taxpayers with a tax debt of not more than $25,000 that they will be able to pay off within five years -- will find out how long their proposed monthly payments would last. Taxpayers who do not meet the criteria for a streamlined agreement can compare their monthly expenses to the amounts allowed under the IRS’s Collection Financial Standards, to help determine an appropriate tax payment amount.

Users may print out the Form 9465, Installment Agreement Request, from the Web site -- with the allowable expense worksheet, if used -- and mail it to the IRS for review and approval. The Web site does not store or transmit any personal data. Persons who are already paying back taxes under an installment plan must pay all subsequent taxes on time or they will default on their agreement. Taxpayers with an installment agreement who are unable to make a future tax payment should call the IRS at 1-800-829-1040 for assistance.

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