Paying my taxes late - Form 9465 - tax pros please?

Question

I have to pay my taxes late and need to use for 9465 . I owe about $4000, and can probably pay $300 or even $400 a month, no problem.

However, they need the form and the first payment by 6/14. I can really only pay $200 for this first installment (this was an expensive month!). Any chance they reject my payment proposal based on this, or should (must) my first payment reflect my continuing payments.

Thanks in advance.

Answer 1

Modify the form to say $200 a month--the IRS will accept it.  Then send in extra money each month that you can so you can get rid of this as quickly as possible.  What you don't want is $300 and then send in $200--that's a default and gets expensive.

Answer 2

You can automatically get an agreement that would allow you to pay the liability over five years.  This would require a payment of less than $100 per month.  I suggest you request an agreement for that amount to give yourself flexibility then pay more so that you can cut the late payment penalty and interest.

Answer 3

Submit your form 9465 Installment Agreement Request with the $200.00 and you can even propose $200.00 per month.  It is better to propose a payment you are comfortable with and you can always send more if you can every month.IRS will not reject a $200.00 payment proposal, you can if you want to send a payment with your Form 9465 or just your payment proposal and wait for the Installment Agreement Ltr to be sent to your for your first payment and due date.

By the way who needs the form and payment by the 14th of June, had you already request an installment agreement?

By the way IRS charges $105 USER FEE for regular Installment agreement (you mail in your payments) or $52.00 for  a direct debit installment agreement.

Answer 4

If your proposal is otherwise acceptable, the IRS will not reject it just because your payment or payments made before the agreement was approved were a little light.  It is quite likely that the person making the decision will not even be aware of the amount of the payment(s) you made.  Once the IRS agrees with your proposal, a light payment could result in a defaulted agreement.