Facing a tax bill you can’t pay? A payment plan can help. This letter formally requests one from the IRS.
This article gives you examples. Use these templates to write your own letter. They make the process much easier.
We provide several sample letters. These are ready-to-use templates. Adapt them to your situation.
Sample Letter to IRS Asking for Payment Plan
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Your Social Security Number]
[Date]
Internal Revenue Service
[IRS Address]
Dear Sir/Madam,
This letter formally requests a payment plan for my outstanding tax liability. I understand I owe [Amount Owed] for the tax year [Tax Year]. I am writing to you because I am currently facing significant financial hardship. Unexpected medical expenses, coupled with job loss earlier this year, have severely impacted my ability to pay this debt in full.
The loss of my job was unforeseen. Finding new employment requires time. I am actively searching. I have significantly reduced spending. Every effort is being made to improve my financial position.
I propose a payment plan spread over [Number] months. This would allow me to pay [Amount per month] each month. I have attached supporting documentation to verify my current financial status. This is crucial to helping you understand my situation. It includes bank statements and proof of my job search activity. Please review it carefully.
I understand the importance of meeting my tax obligations. I am committed to resolving this matter. Working with the IRS is my top priority. I am confident that a payment plan is the best solution for both parties. I want to avoid further penalties and interest accruing on my debt. This is a responsible approach and allows me to work my way out of this.
I can be reached at the telephone number and email address mentioned above. Please contact me to let me know if this proposal is acceptable or if further information is required. Thank you for your time and consideration.
Sincerely,
[Your Signature]
How to Write a Sample Letter to IRS Asking for a Payment Plan
Understanding the Gravity of the Situation
Facing a significant tax liability can be daunting. Procrastination is your enemy. Ignoring the issue won’t make it disappear; instead, penalties and interest will accrue, exponentially increasing your debt. A proactive approach, such as requesting an installment agreement, is crucial to mitigating the deleterious effects of tax delinquency.
Gathering Necessary Information: A Prerequisite to Persuasion
Before even contemplating the composition of your missive, meticulous preparation is paramount. You need to ascertain the precise amount owed, including any penalties and interest already levied. Your tax return information, including your Taxpayer Identification Number (TIN) is indispensable. Having this data readily available streamlines the process considerably.
Crafting a Compelling Narrative: The Artful Letter
Your letter should be concise but comprehensive. Begin with a formal salutation, clearly stating your intention to request an installment agreement. Articulate your financial predicament succinctly, yet convincingly. Avoid obfuscation; transparency is key. Quantify your monthly income and expenses to demonstrate your inability to make a lump-sum payment. This paints a veracious picture of your circumstances.
Structuring Your Argument: A Logical Progression
A logical presentation strengthens your case. Present your financial information clearly. Use bullet points or tables to enhance readability. Propose a realistic payment plan, outlining the amount and frequency of payments. Offer supporting documentation, such as bank statements or pay stubs, to substantiate your claims. This level of probity increases the likelihood of approval.
Addressing the IRS with Respect and Formality: Maintaining Decorum
Maintain a formal and respectful tone throughout your correspondence. Avoid using aggressive or confrontational language. Remember, your goal is to persuade, not to antagonize. A professional and courteous tone fosters cooperation and enhances the probability of a positive outcome.
Proofreading and Revision: The Crucial Final Step
Before submitting your letter, meticulous proofreading is essential. Typos or grammatical errors can undermine your credibility. Have a trusted individual review your letter for clarity and accuracy. Check for any inconsistencies or omissions. A polished letter reflects well on your seriousness and competence.
Submitting Your Request and Following Up: Persistence Pays
Send your letter via certified mail with return receipt requested to ensure its safe arrival and obtain confirmation of receipt. Keep a copy for your records. Follow up after a reasonable timeframe if you haven’t received a response. Persistence and diligence can positively influence the resolution of your situation.
FAQs about sample letter to IRS asking for payment plan
Requesting a payment plan from the IRS can be a complex process. A well-written letter significantly increases your chances of approval.
What information should I include in my letter to the IRS requesting a payment plan?
Your letter should clearly state your intention to request a payment plan, include your taxpayer identification number (TIN), the tax year(s) in question, the total amount owed, and your proposed payment plan (e.g., monthly payment amount and duration). It’s also beneficial to explain your financial situation briefly and honestly, providing supporting documentation if possible (like bank statements or proof of income).
How formal should my letter be when requesting a payment plan from the IRS?
Maintain a professional and respectful tone throughout your letter. Use formal language, avoid slang or informal expressions, and proofread carefully for any grammatical errors or typos. A well-structured and grammatically correct letter demonstrates your seriousness and commitment to resolving your tax liability.
Should I send my letter via certified mail?
Yes, sending your letter via certified mail with return receipt requested provides irrefutable proof that the IRS received your request. This important step protects you in the event of any later disputes regarding the submission of your application.
What supporting documentation should I include with my letter?
While not always required, including supporting documentation strengthens your request. Relevant documents may include bank statements demonstrating your income and expenses, pay stubs, proof of unemployment, or other evidence showcasing your current financial hardship. This helps the IRS understand your situation and assess your eligibility for a payment plan.
What if the IRS denies my request for a payment plan?
If your initial request is denied, don’t lose hope. You can contact the IRS directly to discuss your options and explore alternative solutions, such as appealing the decision or negotiating a revised payment plan based on updated financial information. Seeking help from a tax professional may also be beneficial.
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