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until your account is paid in full. The payments can be paid by mail or by automatic deduction from your bank account every month. Automatic deduction is the best method, as it will ensure you make on-time payments and do not put your installment agreement at risk with late payments.
You must fill out an Installment Agreement Request Form 9465 to apply. You can find this form at www.irs.gov or call your local IRS office for information. The IRS is generally very helpful in setting up this arrangement for you, as it wants you to be able to pay your taxes. Understand that an installment agreement does not erase interest and penalties. On the contrary, interest and monthly penalties will accrue just like they do with any other loan. The advantage of an installment agreement is that it is not a lien and
will not put your property or financial accounts at risk.
Important Note: If you enter into an
installment agreement with the IRS, you
must pay all taxes due on time in the
following years. You cannot add to your
agreement each year. The idea of the
agreement is to help taxpayers who have
inadvertently not had enough tax withheld, or who find themselves in financial hardship at tax time. Be sure you adjust your withholding so enough tax is paid in the following years. Also, any future tax refunds will not be sent to you but will be used to pay off your debt until you have a zero balance. If you fail to keep the agreement, the total amount you owe will come due and may result in a lien.
5. If you are facing serious financial problems when your tax is due and find yourself unable to pay any of the monies due, the IRS will consider temporarily deferring payment until you are able to pay. Try to avoid this if at all possible as interest and penalties will continue to accrue the whole time you are not making payments.
April or Not—It's Always Tax Time 83
I’m proud to be paying taxes to the U.S. The only thing is-I could be just as proud for half the money.
— Arthur Godfrey