Hello, I`m Jill from TurboTax with some information about paying your income tax bill in monthly installments. If you file Form 9465 with your return, attach it to the front of your return when you file it. This gives you the option to change your instalment payment contract online. For example, you can change the payment details and payment method you use to pay each month. However, the IRS charges an $89 fee to change the instalment payment agreement. Some States have instalment application forms. The following status forms are currently available in Drake Tax. Most are not supported for e-filing, but a form is created in view. Be sure to check all government policies for more details on the application. Note: A payment can only be made electronically if Form 9465 is filed with Form 1040.
If you file Form 9465 yourself with the PMT screen completed, the red message 5615 will appear with the message to remove the PMT screen before continuing. One last thing you should always remember is that a instalment payment agreement doesn`t eliminate default interest and penalties – it only prevents the IRS from pursuing stricter collection procedures, such as. B the seizure of your wages. The IRS`s Official Form 9465 allows you to reduce the burden of significant tax obligations by dividing them over a period of months or years, provided you are approved and qualify. If possible, it is in your best interest to try to do more than the minimum monthly payments required to reduce the financial burden of these peripheral fees. It`s also wise to pay off as many tax debts as possible early on so that your repayment debt balance is lower when you start your payout plan. This way, you end up paying less fees and interest. Use Form 9465 to request a monthly payment plan if you can`t pay the full amount you listed on your tax return (or in a notice we sent you). You can file Form 9465, Application for an Instalment Contract, with your income tax return or, if your income tax return has already been filed, submit Form 9465 yourself.
If you owe less than $50,000 and can pay your outstanding balance in full within six years, you don`t need to provide financial information to the IRS. However, if you owe more than $25,000, you`ll need to set up a direct debit agreement to prevent the IRS from filing a federal tax lien notice. To apply for the instalment payment agreement, you don`t need to be able to pay the tax in full within 120 days of the tax filing deadline or the date you receive a collection notice from the IRS, and you currently can`t have a remittance plan with the IRS. If you don`t pay your tax debts, the government has the right to seize assets, seize your wages, and take other steps to pay off your debts. The government can also deposit a tax lien or levy an official IRS levy on your assets. You may be able to avoid these serious consequences by submitting an application for an instalment contract using Form 9465. You can also apply online if you owe less than $50,000. If you need more than that, you must file Form 9465 on paper with Form 433-Fattached. Remember that until your debts are fully paid, you will be charged a compound interest rate. In addition to interest, you will also be subject to late payment penalties.
This message is displayed when an amount is entered on screen 9465, line 8 for the amount paid with this application and the PMT screen is complete. Since the PMT screen recovers the total amount due from Form 1040, but a smaller amount is specified on Form 9465, there is a discrepancy. To clear this message, go to the LMP screen and enter the amount on Form 9465, line 8 as the federal payment amount. This makes it possible to submit the 1040 and 9465 together and only the amount of payment 9465, line 8, can be created. .