Expanded Installment Agreement Irs

Are you struggling to pay your tax debts? Fortunately, the Internal Revenue Service (IRS) offers several repayment options, including the Expanded Installment Agreement.

An Expanded Installment Agreement is a payment plan that allows taxpayers to pay off their tax debts in monthly installments over an extended period. This option is available to those who owe $50,000 or less.

With an expanded installment agreement, you`ll have up to 72 months to pay off your tax debt. That`s six years to make payments at a fixed monthly amount. This payment plan doesn`t require you to provide detailed financial information, as the IRS will base your monthly payments on your ability to pay.

To qualify for an expanded installment agreement, you must meet the following criteria:

1. Your tax debt, including penalties and interest, must be $50,000 or less.

2. You must have filed all required tax returns.

3. You must agree to make monthly payments through direct debit.

4. You must agree to file and pay all future tax returns on time.

5. You cannot have an existing installment agreement for the same tax debt.

If you meet these eligibility requirements, you can apply for an expanded installment agreement by completing Form 9465, Installment Agreement, and Form 433-D, Direct Debit Installment Agreement. You can submit these forms online or by mail.

It`s important to note that you`ll still be required to pay interest and penalties on the unpaid tax debt. However, the interest rate is generally lower than other repayment options.

Furthermore, if you owe more than $50,000, you may still qualify for an installment agreement, but you`ll need to provide detailed financial information to the IRS. This information will allow the IRS to determine your monthly payment amount.

In conclusion, an expanded installment agreement is a great option for taxpayers who owe $50,000 or less in tax debts. It provides a flexible payment plan over an extended period, allowing taxpayers to manage their finances and avoid levies, garnishments, and other enforcement actions. If you`re struggling with tax debt, consider applying for an expanded installment agreement with the IRS.