Need to request an installment agreement from the IRS? Many taxpayers find themselves in this situation. It usually happens when they owe back taxes. The tax amount is simply too large to pay all at once. That’s where a “Sample Letter to the IRS to Pay in Installments” comes in handy.
This letter is your official request for a payment plan. It outlines why you can’t pay the full amount right now. It also proposes a feasible monthly payment amount. It’s a crucial step to avoid more serious IRS collection actions.
Ready to draft your letter? We’ve got you covered! We will share different templates and examples. These samples will help you craft the perfect letter. You can adapt them to fit your specific tax situation. Let’s make this process easier for you!
Sample Letter To The Irs To Pay In Installments
[Your Name]
[Your Address]
[Your City, State, ZIP]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address – find on IRS website]
[IRS City, State, ZIP]
Subject: Request for Installment Agreement
Dear Internal Revenue Service,
I am writing to request an installment agreement to pay my outstanding federal tax liability. My Social Security number is [Your Social Security Number] and the tax year in question is [Tax Year]. I owe [Amount Owed].
I am currently unable to pay the full amount due at this time due to [Briefly explain reason, e.g., unexpected medical expenses, job loss].
I propose to pay [Proposed Monthly Payment Amount] per month until the balance, including penalties and interest, is paid in full. I understand that interest and penalties will continue to accrue until the balance is paid.
I have enclosed Form 9465, Installment Agreement Request, with this letter. I am also including any supporting documentation that may be helpful in evaluating my request, such as [List any enclosed documents, e.g., proof of income, bank statements].
I appreciate your consideration of my request and look forward to your response.
Sincerely,
[Your Signature]
How to Write Sample Letter To The Irs To Pay In Installments
Subject Line: Brevity is the Soul of Wit
- Keep it concise. A subject line like “Installment Agreement Request – [Your Name] – [Tax Year]” works wonders.
- Steer clear of ambiguity. The IRS processes countless documents; make yours instantly identifiable.
Salutation: Addressing the Leviathan
- “To Whom It May Concern” is acceptable if you lack a specific contact. However, if you’ve previously interacted with an IRS agent, addressing them directly showcases attentiveness.
- Employ a formal tone. This isn’t the time for colloquialisms.
Introduction: Setting the Stage
- Begin by unequivocally stating your intent. “I am writing to formally request an installment agreement to satisfy my outstanding tax liability for the [Tax Year].”
- Include your full name, Social Security number (SSN), and the relevant tax year. This preempts potential identification issues.
Body Paragraph 1: Acknowledging the Debt
- Acknowledge the exact amount owed. Demonstrating awareness of your fiscal obligation builds credibility.
- Briefly explain the circumstances that led to your inability to pay in full. Be forthright, but avoid excessive detail or blaming others. Focus on demonstrable hardships, such as job loss or unforeseen medical expenses.
Body Paragraph 2: Proposing a Solution
- Propose a realistic repayment schedule. Research your financial capacity meticulously. Overpromising is a surefire path to default.
- Specify the amount you can afford to pay monthly and the proposed start date. For example: “I propose to remit $[Amount] per month, commencing on [Date].”
- Indicate your willingness to comply with all IRS regulations and provide any supplementary documentation required.
Supporting Documentation: Fortifying Your Case
- While not always mandatory initially, mention that you are prepared to furnish financial statements (e.g., income statements, expense reports) if requested. Proactive compliance signals good faith.
- Consider including copies of relevant documents, such as medical bills or termination notices, if they substantiate your hardship claim.
Closing: Sealing the Deal
- Express gratitude for their consideration. A simple “Thank you for your time and consideration in this matter” suffices.
- Reiterate your contact information: phone number and email address.
- Use a formal closing, such as “Sincerely” or “Respectfully,” followed by your signature and printed name.
Frequently Asked Questions: Installment Agreements with the IRS
Understanding the process for requesting an installment agreement with the IRS can be complex. This FAQ section aims to clarify common inquiries regarding payment plans for outstanding tax liabilities.
What is an IRS Installment Agreement?
An IRS Installment Agreement allows you to pay your tax debt in monthly installments instead of paying the full amount immediately.
Who is eligible for an Installment Agreement?
Eligibility is generally based on your ability to demonstrate financial hardship and an inability to pay the full amount due immediately.
How do I request an Installment Agreement?
You can request an Installment Agreement by completing Form 9465, Installment Agreement Request, and submitting it to the IRS.
What information should I include in my request letter to the IRS?
Your letter should include your name, address, Social Security Number (or Employer Identification Number), the tax year for which you owe, the amount you owe, and your proposed monthly payment amount.
What are the fees associated with an Installment Agreement?
The IRS charges a user fee to set up an Installment Agreement; this fee varies depending on your income and payment method.
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