For various reasons, you may not be able to pay your federal
individual income tax in full. You should not delay filing your tax
return if you are unable to pay the tax due. When 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 the amount you owe in full, file your tax return on
time and attach to the front either a completed Form 9465 , Installment
Agreement Request,
or your own written request for a payment plan, specifying
the amount and the date you can pay each month. You should pay as
much as you can with the return, to lower the interest and penalty
charges. If you have already mailed your tax return and have
received a notice or bill requesting payment, contact the IRS
immediately by calling the telephone number shown on the notice. You
may be eligible to establish an installment agreement by
telephone. If you prefer you may attach a completed Form 9465 or your
own request to the notice and mail it to the appropriate office. The
IRS will let you know usually within 30 days, whether your request is
approved or denied, or if additional information is needed. If
approved, a user fee will be charged.
Before requesting an installment agreement, you should consider other
less costly alternatives, such as a bank loan. The interest rate your
bank charges may be lower than the combination of interest and
penalties charged by the IRS. Remember, penalties and interest will be
charged on the balance due even if you have an approved installment
agreement.
It is important that you contact IRS as soon as you become aware of a
tax liability. IRS makes a distinction between taxpayers making a
sincere effort to pay their debt and taxpayers who
show little or no evidence of cooperation. If you neglect or
refuse to make payment or other arrangements to satisfy your bill in
full, we may take enforced collection action. For additional
information concerning tax questions, 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, order
Publication 594, Understanding the Collection Process ; and Publication
1 , Your Rights As a Taxpayer, by calling 1-800-829-3676.
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