Need to ask the IRS for a payment plan? A “Sample Letter To The IRS To Pay In Installments” can help. It’s used when you can’t pay your taxes on time. This letter formally requests permission to pay your tax debt over a period.
Writing to the IRS can feel daunting. That’s why we’re here to help. We’ll share letter templates and examples.
These samples make it easier. You can adapt them to your specific situation. Let’s simplify the process together.
Sample Letter To The Irs To Pay In Installments
[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 Sir/Madam,
I am writing to request an installment agreement to pay my outstanding tax liability for the [Year] tax year. My Social Security number is [Your Social Security Number].
I owe $[Amount Owed] in taxes, penalties, and interest. I am unable to pay the full amount at this time due to [Briefly explain your financial hardship, e.g., job loss, medical expenses].
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 a copy of my [Year] tax return and Form 9465, Installment Agreement Request.
I appreciate your consideration of my request. I can be reached at [Your Phone Number] or [Your Email Address] if you require any further information.
Sincerely,
[Your Signature]
[Your Typed Name]
How to Write Letter To The Irs To Pay In Installments
Subject Line: Grab Attention Immediately
The subject line is your opening gambit. It should be succinct and unequivocally state your purpose. Think “Request for Installment Agreement – [Your Name] – [Tax Year]” or “Proposed Payment Plan for Tax Liability – [Your SSN/EIN].” Clarity is paramount; avoid ambiguity at all costs.
Salutation: Start with Respect and Formality
Commence with a formal salutation. “Dear Internal Revenue Service” or “To Whom It May Concern” are acceptable, albeit somewhat impersonal, choices. If you happen to know the name of the specific agent handling your case (often found on prior IRS correspondence), by all means, use that. Personalization, where feasible, can subtly influence receptiveness.
Body Paragraph 1: Identify Yourself and Acknowledge the Debt
- State your full name, address, and Social Security Number (SSN) or Employer Identification Number (EIN).
- Clearly identify the tax year(s) for which you owe.
- Acknowledge the total amount you owe. Demonstrating awareness and responsibility is crucial.
- Example: “I am writing to request an installment agreement for my outstanding tax liability for the tax year 2022. My name is Jane Doe, my SSN is XXX-XX-XXXX, and I reside at 123 Main Street, Anytown, USA. I acknowledge owing $5,000 in unpaid taxes.”
Body Paragraph 2: Propose Your Payment Plan
This is where you delineate the specifics of your proposed payment plan. Be realistic and pragmatic. Propose an amount you can genuinely afford each month. A lowball offer might be summarily rejected, while an unsustainable commitment will only lead to future defaults and further complications.
- State the amount you propose to pay monthly.
- Indicate the date you will make your first payment.
- If possible, elucidate the source of your income that will facilitate these payments.
- Example: “I propose to pay $200 per month, commencing on November 1, 2024, until the entire balance, including accrued interest and penalties, is satisfied. These payments will be sourced from my earnings as a freelance consultant.”
Body Paragraph 3: Explain Your Hardship (Optional but Recommended)
If you’re facing financial hardship that precipitated your inability to pay on time, briefly and succinctly explain the circumstances. This isn’t an invitation for a sob story, but rather a contextualization of your situation. Substantiate with documentation if possible, but avoid overwhelming the IRS with extraneous information.
- Briefly describe the hardship (job loss, medical expenses, etc.).
- Emphasize that you are committed to fulfilling your tax obligations.
- Avoid blaming others or making accusatory statements.
- Example: “My current financial predicament stems from unexpected medical expenses incurred earlier this year. Despite this setback, I am resolutely committed to resolving this tax liability expeditiously.”
Closing: Express Gratitude and Reiterate Commitment
End with a polite and professional closing. Express your gratitude for their consideration and reiterate your commitment to resolving the matter. This conveys respect and reinforces your earnestness.
- “Thank you for considering my request. I look forward to your prompt response and am committed to fulfilling my tax obligations.”
- Sincerely, [Your Name]
Attachments: Gather Supporting Documentation
Include copies (never originals) of any supporting documentation that bolsters your claim. This might include:
- Proof of income (pay stubs, bank statements).
- Documentation of hardship (medical bills, layoff notices).
- Prior IRS notices.
Ensure all attachments are clearly labeled and organized. A modicum of diligence in presentation reflects favorably on your credibility.
Frequently Asked Questions: Installment Agreements with the IRS
This section provides answers to common questions regarding requesting an installment agreement from the Internal Revenue Service (IRS). An installment agreement allows taxpayers to pay their tax liabilities over time.
1. How do I request an installment agreement from the IRS?
You can request an installment agreement online using the IRS Online Payment Agreement tool, or by completing Form 9465, Installment Agreement Request, and mailing it to the IRS.
2. What information do I need to provide when requesting an installment agreement?
You will need to provide your name, address, Social Security number or Employer Identification Number, the type of tax owed, the tax year, the amount you owe, and the amount you can afford to pay each month.
3. Will the IRS automatically approve my installment agreement request?
No, the IRS will review your request and consider factors such as your ability to pay, your compliance history, and the amount of tax owed. Approval is not guaranteed.
4. Are there any fees associated with an installment agreement?
Yes, there are fees to establish an installment agreement. The fees vary depending on whether you apply online, by phone, mail, or in person, and whether you qualify for low-income taxpayer status.
5. What happens if I miss a payment on my installment agreement?
If you miss a payment or fail to comply with other terms of the agreement, the IRS may terminate the agreement, and you may be subject to penalties and interest on the unpaid balance.