Payment with No Agreement
There are some advantages to simply paying the IRS without a payment agreement, i.e, "Voluntary Payment". For one, you can designate which year to apply the payments. This is helpful if you owe for multiple years & need to favor a particular year. But, the IRS will keep pestering you with notices such as Notice LT33 reminding you of the debt. So, eventually you'll probably have to get an installment payment agreement with the IRS to avoid levies.
Payment Agreement
If you owe the IRS less than $25,000 you can request a "streamlined" installment payment agreement with the IRS. Simply complete Form 9465 and submit it to the IRS. Divide the amount you owe by 72 months to get your monthly payment amount. It will take at least 2 months, but once the installment agreement is approved the IRS will send you Letter 2273C and Notices CP521 confirming the plan.
In the meantime, you can call the IRS collections division at 1-800-829-7650 or 1-800-829-3903 & confirm that they are working on the case. But, be warned, they may ask you a lot of personal questions that you may not want to answer immediately. That's why you hire a representative - as a barrier between you & the IRS.
If you can't pay the 72 month plan, you'll have to complete and submit Form 433F or Form 433A. These forms require a lot of work. Fortunately, you can learn the tips and tricks to these forms by viewing the TaxHelp Webinar series on the Collection Information Statements. These Webinars will teach you how to gather and present a winning case against the IRS by using their own forms against them!
The Steps to get an installment agreement are:
- Get your Account Transcripts to see what the debt is and for what years.
- Complete Form 9465 if you can pay the debt divided by 72.
- If you can't pay or you want a lower agreement, please complete Form 433F or Form 433A and submit it to the IRS with Form 9465, telling them how much you can pay.
- Start paying the amount immediately to show good faith. In about 3 months you will likely receive a Letter 2644C or Letter 2645C delaying your case. This is extremely irritating but at least you know they got your request. If you start paying it is more likely the IRS will see yuor good faith and approve the payment arrangement.
But, even if the IRS sends you a Letter 2272C denying you an installment agreement, keep paying and submit another Form 433A or Form 433F. You must have an installment agreement to avoid seizure of your property or wages. Keep fighting until you get an agreement!
But, once you get an agreement don't fail to make a payment or the IRS will either send you a reminder Letter 4458C or break the agreement with Notice CP523.
Later, the IRS might send you a Notice CP522 stating they are "reviewing" your agreement. You will have to complete another Form 433.
Every year they will send you "reminder" letters about your debt (See Notice CP71C) & they will send you a record of the payments you have made. (See Notice CP-89).
It is best to view the TaxHelp Webinars, complete the form in pencil and bring it in to our offices so we may construct an aggressive Action Plan to win your case against the IRS!
J. David Hopkins, JD, LLM
