The Irs Collection Process Publication 594 (Page 3 of 8) in pdf

The IRS Collection Process Publication 594

Page 3

Pay by mail or in person at a local IRS office

Apply for an Offer in Compromise (OIC)

You can mail a check to us at the address listed on your bill or bring

You may be eligible for an Offer in Compromise if you can’t pay the

it to your local IRS office. For a listing of offices near you, please visit

amount you owe in full or through installments. By requesting an Offer

in Compromise, you’re asking to settle unpaid taxes for less than the

full amount you owe. We may accept an Offer in Compromise if:

Options if you can’t pay in full now

•

We agree that your tax debt may not be accurate,

•

You have insufficient assets and income to pay the amount due, or

Apply for an Installment Agreement

Because of your exceptional circumstances, paying the amount due

•

An Installment Agreement with the IRS means that we’ll allow you

would cause an economic hardship or would be unjust.

to make smaller periodic payments over time if you can’t pay the full

amount at once. There are several ways to apply for an Installment

For an Offer in Compromise to be considered, you must pay an

Agreement:

application fee and make an initial or periodic payment. However, low

•

at ,,id=149373,00.html.

income taxpayers may qualify for a waiver of the application fee and

Online

Only individuals who owe $50,000 or less can apply online.

initial or periodic payment.

•

Please call the number on your bill or 1-800-829-1040.

By phone

For more information, please see the Low Income Certification on

•

Please complete Form 9465, Installment Agreement

By mail

Form 656, Offer in Compromise.

Request, if you owe $25,000 or less. Complete Form 9465-FS,

To apply for an Offer in Compromise, complete one of the following forms:

Installment Agreement Request, if you owe more than $25,000.

Form 656-L, Offer in Compromise (Doubt as to Liability)

•

Or you can use Form 2159, Payroll Deduction Agreement. Mail your

Complete this if you think your tax debt isn’t accurate.

form to the address on your bill.

•

Form 656, Offer in Compromise Complete this if you’re unable

•

at your local IRS office.

In person

to pay the amount due, have an economic hardship, or other special

If you request a payment plan, you can reduce penalties and interest

circumstance that would cause paying the amount due to be unjust.

by making voluntary payments according to the proposed plan’s terms

For more information, see Form 656-B, Offer in Compromise Booklet or

until you’re notified whether we’ve accepted your payment plan request.

visit ,,id=243822,00.html.

Keep in mind that our acceptance of your interim payments doesn’t

mean we’ve approved your request. We’ll notify you in writing once

If you need more time to pay

we’ve made our decision.

Ask that we delay collection

With an Installment Agreement, you can pay by check, direct debit,

If you can’t pay any of the amount due, you can request that we delay

through payroll deductions, or electronic funds transfer. Keep in mind

collection until you’re able to pay. Prior to approving your request,

there’s a user fee for Installment Agreements. However, if you meet

we may ask you to complete a Collection Information Statement and

our low-income guidelines, you can pay a reduced user fee. For more

provide proof of your financial status. Please remember that even if we

information, see Form 13844, Application for Reduced User Fee for

delay collection, we’ll still charge applicable penalties and interest until

Installment Agreements.

you pay the full amount, and we may file a Notice of Federal Tax Lien

To be eligible for an Installment Agreement, you must file all required

(see page 4). We may also request updated financial information during

tax returns. Prior to approving your Installment Agreement request, we

this temporary delay to review your ability to pay.

may ask you to complete a Collection Information Statement (Form 433

F, 433-A and/or Form 433-B) and provide proof of your financial status.

How long we have to collect taxes

Please have your financial information available if you apply over the

We can attempt to collect your taxes up to 10 years from the date

phone or at an IRS office. For more information, see Publication 1854,

they were assessed. However, there are exceptions to this time frame.

How to Complete a Collection Information Statement (Form 433-A).

For example, by law, we’ll suspend and extend collection while:

If we approve your request, we’ll still charge applicable interest and

•

We’re considering your request for an Installment Agreement or Offer

penalties until you pay the amount or balance due in full, and may file

in Compromise. If your request is rejected, we’ll suspend collection

a Notice of Federal Tax Lien (see page 4.) If we reject your Installment

for another 30 days, and during any period the Appeals Office is

Agreement request, you may request that the Office of Appeals review

considering your appeal request.

your case. For more information, see Publication 1660, Collection

•

You live outside the U.S. continuously for at least 6 months. Collection

Appeal Rights.

is suspended while you’re outside the U.S. and, if at the time of your

If you’re unable to meet the terms of your approved Installment

return the normal collection period would expire before 6 months

Agreement, please contact us immediately.

from the date of your return, the extended period won’t expire before

the expiration of the 6 months after your return.

The Irs Collection Process Publication 594 Page 3

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