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 in
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 (PDF), 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 pay the amount you owe 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). Refer to Tax Topic 201 for
information about "the collection process." For additional information regarding
alternative methods of payment, or the nearest location to receive assistance,
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, refer to Publication 594 (PDF), The IRS Collection Process, and Publication 1 (PDF), Your Rights as a Taxpayer.
Tax Topics & FAQs | 2001 Tax Year Archives | Tax Help Archives | Home
