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.
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
call 1-800-829-1040.
If you would like some printed information on "your rights as
a taxpayer," making arrangements to pay your bill, installment agreements,
and what happens when you take no action to pay, download Publication
594, Understanding the Collection Process, and Publication
1, Your Rights As a Taxpayer, or order by calling 1-800-829-3676.
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