Question:   Can I make installment payments on the amount I owe?

Answer:   Yes. If you cannot pay the full amount due as shown on your return, you can ask to make monthly installment payments. If your request to pay in installments is granted, the following conditions apply.

• You will be charged a one time user fee of $105.00,
• Interest is charged on any tax not paid by its due date, and
• You will be charged a late payment penalty unless you can show reasonable cause for not paying the tax by the due date (April 15, 2009) for individual income tax returns Penalty will be charged until it reaches 25% of the original balance due and interest will be charged until the account is fully paid.
• Before requesting an installment agreement, you should consider less costly alternatives such as a bank loan.

To request an installment agreement send Form 9465 (PDF), Installment Agreement Request, with your return or call 800-829-1040. If you call you can also request a direct debit agreement or a payroll deduction agreement. You should receive a response within 30 days if you submit the form with your return. For more details on installment payments, refer to the references below.