The IRS recently updated Form 9465 used by taxpayers to request an installment agreement or payment plan to pay back taxes.

Taxpayers in Boca Raton, Delray Beach, Coral Springs and elsewhere in Palm Beach and Broward Counties may be able to resolve their IRS tax problems by filing Form 9465.

Form 9465 can be used when you are unable to pay the tax shown on your return or when you receive notice from the IRS that you have unpaid back taxes from prior tax years.

Many taxpayers will qualify to use the streamlined rules when requesting an installment agreement. A streamlined installment agreement allows you up to 72 months to pay your back taxes. The IRS will charge you interest during the term of the installment agreement and late payment penalties may apply. You will meet the requirements of a streamlined payment plan if your unpaid taxes do not exceed $50,000 and you agree to pay by direct debit from your bank account or by payroll deduction. The IRS will deny your request for a payment plan if all required tax returns have not been filed. Some additional benefits of qualifying for the streamlined agreement are that you do not need to provide the IRS with any financial information and the agreement will be granted even if you have the ability to pay your outstanding taxes faster than requested on Form 9465.

If you owe more than $50,000, or cannot pay your tax debt within 72 months, or do not sign up for direct debit or payroll deduction you are required to complete Form 433-F. This form provides the IRS with detailed information of your financial condition.

The fee for establishing an IRS installment agreement is $52 if you use direct debit or $120 if you want to make your payments by check, credit card or request payroll deduction. Taxpayers with income below a prescribed amount may qualify for a lower fee.

The IRS may file a tax lien against you until your back taxes are paid in full. This may have a detrimental effect on your credit score. However, the IRS will withdraw a filed lien if you meet certain criteria, which should restore your credit score back to where it was prior to the IRS lien.

If you are located in Boca Raton, Delray Beach, Coral Springs or elsewhere in South Florida or New York call the tax professionals at East Coast Tax Consulting Group today at 866-550-7655 to resolve your IRS tax problems.