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Author: Junglecat6 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121338  
Subject: Form 9465, Installment Agreement...Costs? Date: 4/16/1999 7:04 AM
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I had to file a Form 9465, Installment Agreement yesterday for my tax bill was too high to cover for now. I still owe $5904.

What are the monthly/quarterly/annual interest and/or penalty costs? How long do I have to pay the debt?

Thanks.
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14932 of 121338
Subject: Re: Form 9465, Installment Agreement...Costs? Date: 4/20/1999 6:58 PM
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[[I had to file a Form 9465, Installment Agreement yesterday for my tax bill was
too high to cover for now. I still owe $5904.

What are the monthly/quarterly/annual interest and/or penalty costs? How long
do I have to pay the debt?]]

The instructions to Form 9465 will give you the best rundown of what will be required of you. But here is an excerpt from Publication 17 that might fill in some of the blanks...

"If you cannot pay the full amount due with your return, you can ask to make monthly installment payments. However, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 1999, even if your request to pay in installments is granted. If your request is granted, you must also pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible with your return. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan.

To ask for an installment agreement, use Form 9465, Installment Agreement Request. You should receive a response to your request within 30 days. But if you file your return after March 31, it may take longer for a reply.

Guaranteed availability of installment agreement. The IRS must agree to accept the payment of your tax liability in installments if, as of the date you offer to enter into the agreement:

1) Your total taxes (not counting interest, penalties, additions to the tax, or additional amounts) do not exceed $10,000,
2) In the last 5 years, you (and your spouse if the liability relates to a joint return) have not:
a) Failed to file any required income tax return,
b) Failed to pay any tax shown on any such return, or
c) Entered into an installment agreement for the payment of any income tax,
3) You show you cannot pay your income tax in full when due,
4) The tax will be paid in full in 3 years or less, and
5) You agree to comply with the tax laws while your agreement is in effect."

I hope that, at least, you filed your tax return on time, even with a balance due and no payment...it'll save you additional penalties. Finally, you should know that there is a USER FEE that you'll be required to pay in order to enter into the agreement...I believe that it's still $43.00.

Hope this helps.

TMF Taxes
Roy

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