A “Sample Letter To IRS Requesting a Payment Plan” is a written request to the IRS. It asks to pay your taxes over time. People use it when they cannot afford to pay their full tax bill upfront.
This article is your guide. We have many samples. These samples make writing your letter easy.
We provide letter templates for everyone. Use our samples to get started. Make the process simple and stress-free.
Sample Letter To Irs Requesting Payment Plan
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address]
[IRS City, State, Zip Code]
Subject: Request for Installment Agreement – [Your Tax Year] Taxes
Dear Internal Revenue Service,
I am writing to request an installment agreement to pay my outstanding federal income tax liability for the [Tax Year] tax year. I owe $[Amount Owed].
I am unable to pay the full amount at this time due to [Briefly explain your financial hardship, e.g., job loss, medical expenses, etc.].
I propose to pay $[Proposed Monthly Payment Amount] per month until the balance, including penalties and interest, is paid in full. I can make my first payment on [Date of First Payment].
I have enclosed Form 9465, Installment Agreement Request, with this letter.
I understand that interest and penalties will continue to accrue until the balance is paid in full. I also understand that the IRS may file a Notice of Federal Tax Lien to protect the government’s interest.
I would appreciate it if you would consider my request. Please contact me if you require any further information or documentation.
Thank you for your time and consideration.
Sincerely,
[Your Signature]
How to Write Sample Letter To IRS Requesting Payment Plan
1. Subject Line: Capturing Attention
The subject line is your initial entreaty. Be forthright and succinct.
- Use: “Request for Installment Agreement – [Your Name] – [Tax Year]”
- Example: “Request for Installment Agreement – Jane Doe – 2022”
- Avoid ambiguity. Clarity is paramount.
2. Salutation: Addressing the Indefatigable IRS
Formality reigns supreme here. Eschew casual greetings.
- “Dear Internal Revenue Service,” is a safe bet.
- If you know the specific name of the agent, use “Dear Mr./Ms. [Agent’s Last Name],”
- Avoid “To Whom It May Concern.” It lacks perspicacity.
3. Introduction: Setting the Stage
Briefly introduce yourself and state your intent. Transparency is key.
- State your name, address, and taxpayer identification number (SSN or EIN).
- Clearly articulate that you are requesting an installment agreement to settle your outstanding tax liability.
- Mention the tax year in question.
4. Body Paragraph 1: Acknowledging the Debt and Exhibiting Remorse
Acknowledge your debt and demonstrate a willingness to rectify the situation. Show contrition without groveling.
- State the total amount owed.
- Explain briefly why you were unable to meet your tax obligations.
- Avoid lengthy, convoluted narratives. Brevity is beneficial.
- Accept responsibility. Don’t cast blame gratuitously.
5. Body Paragraph 2: Proposing a Payment Plan
Detail your proposed payment plan. Be realistic and demonstrate fiscal prudence.
- State the amount you can realistically pay each month.
- Suggest a payment date.
- Acknowledge that interest and penalties will continue to accrue.
- Example: “I propose to pay $X per month, commencing on [Date], until the balance is extinguished. I understand that interest and penalties will continue to accrue until the debt is fully satisfied.”
6. Supporting Documentation and Contingencies
Mention any supporting documentation and address potential hiccups.
- Indicate that you are including Form 9465, Installment Agreement Request.
- If you have extenuating circumstances, mention them briefly. For example, “I am prepared to furnish additional financial information upon request.”
- State that you are available to discuss this matter further at their convenience.
7. Closing: Expressing Gratitude and Ensuring Clarity
End on a polite and professional note. Leave no room for misinterpretation.
- Use a formal closing: “Sincerely,” or “Respectfully,”
- Sign your name.
- Type your name below your signature.
- Include your phone number and email address for ease of contact.
Frequently Asked Questions: IRS Payment Plan Requests
Navigating tax debt can be complex. This FAQ section provides concise answers to common inquiries regarding requesting a payment plan from the IRS.
1. What is the best way to request a payment plan from the IRS?
The IRS offers several methods: online through the IRS website (preferred), by phone, or by mail using Form 9465, Installment Agreement Request.
2. What information should I include in a letter to the IRS requesting a payment plan?
Your letter should include your full name, address, Social Security number (or Employer Identification Number), the tax year(s) for which you owe, the amount owed, and a proposed payment schedule.
3. Will the IRS automatically approve my payment plan request?
No, the IRS will review your request based on your ability to pay and compliance history. Approval is not guaranteed.
4. What happens if the IRS rejects my payment plan request?
You will receive a notice explaining the reason for denial. You may be able to appeal the decision or propose a modified payment plan.
5. Are there fees associated with setting up an IRS payment plan?
Yes, the IRS typically charges a user fee to establish a payment plan, though the amount may vary. Lower fees are often available for online applications and direct debit payments.
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