Completing Form 433-D Installment Agreement After IRS Audit
First, let’s be clear: IRS audits are the worst!!
After a tax audit, you may owe money to the IRS. Most people cannot pay off the amount due all off at once. In that case, the IRS offers a monthly payment plan called the Installment Agreement. The IRS must approve this agreement. The monthly amount paid can often be adjusted to reflect your true ability to pay.
Important Note: While you can apply for an installment agreement yourself, if you or your business owe a substantial tax debt, it is best to hire a tax attorney. An attorney will have the training and knowledge to ensure you get the lowest monthly payment possible. Plus, sometimes you need protection from IRS. But in this article, we share a “shortcut” for a simple, expedited agreement if you can afford it.
Form 433-D, Installment Agreement, is used to set up automatic payments to the IRS through your
bank account. Even if you don’t already have a pending or approved agreement with the IRS, you can still submit this Form 433-D to request a monthly plan to pay your amount due.
How to Complete Form 433-D
Form 433-D requires specific information to be accepted by IRS. It is essential to know exactly what items the IRS requires to make the process work smoothly.
Here is what is required:
1. Your name, Social Security Number, and phone numbers
2. Employer Name and Contact Information (if you want to pay through your paycheck)
3. Bank Name and Contact Information (if you want to pay through your bank)
4. What Type of Taxes You Owe
- Example 1: If you owe Form 1040 Income Tax, enter “Form 1040”
- Example 2: If you owe Form 941 Payroll Tax, enter “Form 941”
5. Years or Tax Periods for the taxes owed
6. The total amount of tax, penalty, and interest owed
7. Enter your monthly payment amount
- The simplest estimate is Amount Due $$ / 72
8. The date you will make the payment
- NOTE: This Form 433-D will take 4-8 weeks to process. Pick a beginning date, ranging from 30-60 days from when you will submit this Form 433-D. IRS only accepts payments from the 1st-28th of the month.
9. Written (not typed) initials in the appropriate box
- NOTE: The IRS will return this Form 433-D if you do not initial the form.
10. Your bank routing and account number
11. Your signature and date are also required
- NOTE: Both spouses must sign if the amount due is for jointly-filed returns.