IRS Relief Forms

Installment Agreements

Installment agreements give you more time to pay off your tax debt. Short-term plans last 180 days or less, while long-term installment agreements generally must be paid off within 72 months. There are also partial payment installment agreements (PPIAs) for those who cannot pay their tax debt in full but can make partial payments until the Collection Statute Expiration Date. Here are some of the forms that you may need to file if you want to set up monthly payments.

IRS Form 9465, Installment Agreement

IRS Form 9465 is required for those who do not wish to apply for an Online Payment Agreement. Plan on providing information about your finances, marital status, and assets on this form.

Form 433-F

Form 433-F gathers information on your collectability. You may have to file this form if your tax debt is over a certain level or if you have recently defaulted on a payment plan. Additionally, although there is no specific form for a partial payment installment agreement, you’ll likely need to submit both Form 9465 and Form 433-F to check your eligibility for this option. 

Form 1127

This provides more time to those who need extra time to pay their tax debt or deficiency. This form may grant you up to 180 days. You’ll need to explain the reason you are requesting an extension and explain how you’ll face undue hardship if your request is denied. Supporting documentation that’s required includes three months of income and expenses, as well as a statement of assets and liabilities.

Offer in Compromise

An Offer in Compromise may permit you to settle your tax debt for less than the full amount you owe. The IRS requires a considerable amount of documentation and paperwork before even considering an offer. These forms are compiled in the Form 656 Booklet.

Form 656

This is a comprehensive form that collects your financial information and allows you to calculate your minimum offer, whether you plan on paying in a lump sum or spreading your payments over six to 24 months.

Form 433-A

The IRS requires Form 433-A for individual taxpayers requesting an Offer in Compromise. This is an in-depth form that asks for information on your employment, family size, assets, income and expenses, and current legal issues. This form also requires over one dozen forms of supporting documentation, including bank statements, pay stubs, loan statements, and court orders.

Form 433-B

Form 433-B is required for businesses requesting an Offer in Compromise, and often for individuals who own their own corporation or LLC. Plan on providing information on your business assets, income information for owners and partners, business income, business expenses, and legal issues faced by the company.

Form 656-L

Although most taxpayers request an Offer in Compromise due to lack of collectability, some seek relief because there is doubt as to liability. Those in this situation must fill out Form 656-L. The main difference on this form is the section requesting an explanation for why you believe the tax is incorrect.

Penalty Abatement

In certain situations, taxpayers may request relief from penalties. This can make a significant financial difference since many penalties add up month after month.

Form 843

Form 843, Claim for Refund and Request for Abatement, allows you to request abatement of interest and penalties due to reasonable cause, erroneous advice from the IRS, or IRS errors and delays.

Currently Not Collectible

To be considered Currently Not Collectible, you’ll need to demonstrate to the IRS that your financial situation is so restrictive that any payments toward your tax debt would leave you unable to pay your basic expenses. These forms collect information relating to your financial well-being, assets, and overall collectability.

Form 433-F

Form 433-F, Collection Information Statement, gathers in-depth information on your bank accounts, investments, cryptocurrency, real property, employment, and living expenses.

Form 433-A or 433-B

The information required for Form 433-A is fairly similar to what is required on Form 433-F. Form 433-B requests information on a business’s officers, their salaries, business assets, and debts.

Innocent/Injured Spouse Relief

This type of relief aims to right a situation that creates substantial inequity for one spouse. Innocent Spouse Relief applies in situations where a couple has filed a return jointly, but one spouse underreported the tax due without the other spouse’s knowledge. Injured Spouse Relief applies when the IRS takes both spouses’ tax refunds for one spouse’s debts.

Form 8857

The Request for Innocent Spouse Relief form requests information on why the requesting spouse should not be responsible for the full tax debt. 

Form 8379

Form 8379, Injured Spouse Allocation, requests information on your joint tax return and how the income and deductions are broken down by individual.

CDP Collection Due Process Hearing

You may request a Collection Due Process hearing with the IRS Independent Office of Appeals if you want to seek alternative resolutions to collection actions. This is often the next step after receiving a Notice of Intent to Levy.

Form 12153

This form, Request for a Collection Due Process or Equivalent Hearing, allows you to request either an appeal or a hearing. You’ll need to identify the reason you are requesting a hearing, provide personal information, and your proposed collection alternative.

CAP Collection Appeals Program

The Collection Appeals Program is available for various collection actions. For example, you can appeal the IRS’s decision to seize your property, place a federal tax lien, or terminate your installment agreement.

Publication 1660

There are specific requirements to appeal and you must go through the proper process to request an appeal. Publication 1660, Collection Appeal Rights, outlines your options and next steps.

Form 9423

When you are ready to move forward with a Collection Appeal Request, you can fill out Form 9423. You can indicate which collection action you are appealing and your reason for disagreeing with the collection action.

Withdrawing a Tax Lien

The IRS may place a federal tax lien on your property when you fail to pay your tax debt. This lien takes precedence over other creditors’ interests and can have a negative impact on your ability to take out loans, as well as your ability to sell the property. You may be able to request a tax lien withdrawal in certain circumstances.

Form 12277

This form, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien, lets you request a withdrawal of your tax lien. You’ll need to either transfer information from your federal tax lien or include a copy of Form 668(Y) and indicate the reason you are requesting a withdrawal. Other documentation may be necessary.

Taxpayer Advocate Help

The Taxpayer Advocate Service is an independent organization in the IRS that helps taxpayers resolve problems and find alternative solutions to problems with the IRS. Requesting assistance is fairly simple and allows the IRS to assign an advocate to your claim.

Form 911

Form 911, Request for Taxpayer Advocate Service Assistance, provides space to explain your tax issue, outline the type of assistance you are requesting, and give the TAS permission to talk to third parties in order to provide assistance.

Power of Attorney

Form 2848

This form allows you to authorize someone else to represent you in dealing with the IRS to address your tax problem. Only certain tax professionals, like those at McLaud Law P.C. can be granted this authority. This form can be the key to navigating the complex network of forms discussed above, as it means you are getting professional guidance and representation.

While no one ever wants to find themselves in the position of struggling with tax problems, there are multiple paths forward when you need to find a solution. This breakdown of important IRS forms can help you find the right forms for your tax needs, but completing these forms correctly and in your favor, and negotiating an ideal resolution with the IRS are difficult tasks that you shouldn’t attempt without professional representation. When you’re ready to move forward with the help of an experienced tax attorney, the team at McLaud Law P.C. is here to support you through your tax problems. 

Give us a call at 585-397-7785 or fill out our online contact form to have a team member get in touch with you.

This communication is Attorney Advertising. It is presented for informational purposes only and does not constitute legal advice. Every legal situation is different, and prior results do not guarantee a similar outcome. This communication does not create an attorney-client relationship between McLaud Law P.C. and the recipient.