Guaranteed Installment Agreement - Process & Requirements

A Guaranteed Installment Agreement (IA) is best for taxpayers that owe the IRS less than $10,000, excluding any IRS Penalties and Interest, and who cannot pay the total amount they owe now. This payment plan is "Guaranteed" by "IRC 6159(c)" so long as you meet certain requirements and complete the request process. This is the easiest to obtain out of the most common types of IRS Installment Agreements.

Guaranteed Installment Agreement Requirements

1. Less Than $10k in back taxes or tax debt (excluding penalties and interest)
2. Previous 5 years of tax returns were filed and paid on time
3. You don't have any other IAs currently with the IRS
4. You are not in bankruptcy (or filed for it) or had an Offer In Compromise Accepted
5. You can and agree to make monthly payments on your current balance over 3 years or less
6. You are agree to pay and file all tax returns going forward for the duration of the agreement

Guaranteed Installment Agreement Process

1) Complete Form 9465 or use the Online Payment Agreement Application (OPA) at the IRS website or have your professional (Power of Attorney) help you out. Make sure to read the details that the IRS provides as well.

2) Calculate your monthly payment by taking the total amount of IRS taxes you owe, including penalties and interest, and divide that number by 30. The remaining 6 months is typically set aside for Interest.

3) Include the $52 User fee (if paying by ACH withdrawal or debit) or the $105 for a check and $105 if you are deducting the Installment Agreement out of your payroll. This fee can be reduced to $43 dollars if you are under Dept of Health & Human Services poverty level. Realize your first payment is not due in 45 days but it normally should include this user fee.

4) Sign, date, and if you are not using the Online Payment Agreement Application, then make sure to make copies of the form 9465 you complete, and send original hard copies to the appropriate IRS address which is listed on the 2nd page of form 9465.

Realize that the IRS can still file a tax lien while you are paying an Installment Agreement until you make your last payment. However, they will not take actions against you if you have recently submitted a request for an IA. Typically, the IRS will get back to you within a 30 day period if your agreement is accepted or not. If they have any questions or problems, they will contact you.

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