Filing taxes is the responsibility of every American. It is required by law. Although people pay taxes every year, not everyone pays the exact amount needed from them. Some mistakenly pay less than the requirement. Others do not have the amount required. A person may have outstanding taxes to pay to the IRS (Internal Revenue Service). To minimize tax debt, the IRS came up with a system for monthly installment payments. Doing this helps reduce the amount of money a taxpayer needs to pay. In particular, an individual can file the IRS tax form 9465. Nonetheless, a person must pay interest and penalty due to an overdue balance.
Form 9465 Eligibility
Any person that wants to pay taxes in installments can use the IRS installment agreement form 9465. However, a taxpayer must not owe the IRS over $10,000 to have an automatic approval. In addition, an individual must fulfill the following.
- Must have the capacity to settle their outstanding balance within 3 years.
- They must have reported all their previous taxes.
- They must not have made a similar agreement in the last 5 years.
- Must have the capacity to pay off installments when due.
From the IRS 9465 instructions, a person with a $50,00 tax debt cannot file an IRS form 9465 online payment agreement. They have to send out a physical application with their physical signatures.
How to Obtain IRS form 9465 PDF
IRS form 9465 printable is available on the internet. A user can access it via the IRS website. Depending on the type of taxpayer, they can either fill it electronically or print the document.
Options When Completing Form 9465
There are several things a taxpayer should pay attention to when completing an IRS form 9465 installment agreement request. A person may want to go through IRS form 9465 instructions to get more guidance on what to do. In particular, a taxpayer has a couple of options to consider. An individual gets to set up and complete the free form 9465 for the first time. Subsequently, a taxpayer will have to pay $31 to $225. The exact amount a person pays depends on how they set their payment and how they make it.
Penalties
Completing the IRS payment plan form 9465 has several benefits. But like anything good, a structure must be put in place to prevent abuse by people. Therefore, an individual incurs a compound interest daily for failing to pay their taxes when due. This interest rate is calculated using the federal fund interest rate. A person the decides not to pay their taxes within a year after applying for the installment can be liable to about a 12% penalty annually.
Payment Methods
A taxpayer can pay their taxes in installments using several methods. These methods include:
- Money order;
- Cashier’s checks;
- Personal checks;
- Credit card;
- Direct debit.
In addition, a taxpayer may opt to make payment using EFTPS, which allows for payment of federal taxes. It offers payers a transparent system of making payments. However, separate registration is required to use this system.
Please check other IRS forms: