Complete Guide to IRS Tax Relief Forms

Complete Guide to IRS Tax Relief Forms

From submitting an Offer in Compromise or setting up a monthly installment agreement payment plan to asking for help with liens or appealing tax collections, here are the most common forms used to request IRS tax relief.

IRS Offer in Compromise Forms

Form 656: Offer in Compromise Request

Form 656 for an OIC is used by taxpayers who want to pay off IRS tax debt for an amount that is less than they owe. To complete 656, you will need to have documents that explain your financial situation and ability to pay taxes to the IRS, including income sources, monthly expenses and liabilities, and assets.

You will also need to propose an “offer” amount. For example, if you owe $20,000 to the IRS, you may be able to ask the IRS to settle for $10,000 based on your specific finances. When the IRS reviews your offer and supporting documents, they will either approve or deny your settlement amount.

Get more information about the Offer in Compromise form at https://www.irs.gov/forms-pubs/about-form-656.

Form 433-A: Offer in Compromise Collection Information Statement for Wage Earners and Self-Employed Individuals

433-A provides an overview of an individual’s financial situation so that the IRS can verify whether the taxpayer can afford to pay off the full tax debt or just a portion of it.

The form asks for all income and assets as well as monthly expenses and other liabilities. You will also need to include recent financial transactions, such as a home or car purchase, and whether you anticipate future income changes. This information is necessary for the IRS to evaluate a taxpayer’s ability to pay an OIC.

For additional information about the OIC collection information statement for individuals, review Publication 1854: https://www.irs.gov/pub/irs-pdf/p1854.pdf.

Form 433-B: Offer in Compromise Collection Information Statement for Businesses

Businesses filing an OIC use 433-B to submit information about their company’s financial condition to the IRS.

Required information includes operational income, overhead costs, expenses, and a detailed list of assets, liabilities, and accounts receivable.

Find Form 433-B at https://www.irs.gov/pub/irs-pdf/f433b.pdf. Publication 5059 contains more detailed information for how to complete the form: https://www.irs.gov/pub/irs-pdf/p5059.pdf.

Form 656-L: Offer in Compromise Doubt as to Liability (DTLA)

If you were not able to dispute your tax debt and know the IRS made a mistake, use Form 656-L to submit a DTLA offer.

You must provide evidence that supports your claims of inaccuracies, such as copies of past tax returns, income, and other proof showing exactly where the IRS messed up.

They will review your DTLA OIC and determine whether to accept or deny your dispute over tax liabilities and the offer amount you proposed.

Form 656-L for Doubt as to Liability offers is available at: https://www.irs.gov/pub/irs-pdf/f656l.pdf.

IRS Installment Agreement Form

Form 9465: Installment Agreement Request

This form allows taxpayers to agree to a monthly payment plan to repay tax debt. It includes specific information about setting up one of the various installment agreements, including guaranteed, streamlined, and partial payment plans.

The amount owed to the IRS, proposed monthly payment, and preferred payment date are needed to complete the form.

Additionally, you can use this form only if you owe less than $50,000 to the IRS and are able to pay off your tax debt within 72 months.

Get instructions and more information about requesting an Installment Agreement at https://www.irs.gov/instructions/i9465.

Form 433-F: Installment Agreement Collection Information Statement

Form 433-F requests comprehensive financial information from taxpayers seeking specific installment agreements for more significant tax debts.

When submitting this form, you must provide proof of income and assets, living expenses, and unpaid liabilities. The IRS then examines the information you sent to determine your ability to pay according to payment plan guidelines.

Form 433-F is also used when taxpayers request relief from IRS collections due to their inability to pay.

Find Form 433-F for installment agreements at https://www.irs.gov/pub/irs-pdf/f433f.pdf.

Form 433-D: Installment Agreement Payment Terms

This form describes installment agreement terms, including payment dates and amounts. Once the IRS has approved a taxpayer’s installment agreement request, it mails Form 433-D.

The information requested on the form includes the agreed monthly payment amount, payment due date, bank information for direct debit payments, and whether increases or decreases in payment amounts are expected.

Get a copy of Form 433-D for installment agreement payment terms at https://www.irs.gov/pub/irs-pdf/f433d.pdf.

IRS Currently Not Collectible Form

Form 433: Currently Not Collectible Request and Collection Information Statement (A, B, F)

To request “Currently Not Collectible” status, taxpayers must submit Form 433-A, 433-B, or 433-F, depending on their situation.

Form 433-A is intended for individual taxpayers, 433-B for businesses, and 433-F is a simplified collection information statement for people with straightforward financial situations. The IRS reviews information provided on 433s to determine if paying the tax debt creates a severe economic hardship.

If you are approved as CNC, the IRS suspends collection actions. However, during the suspension, interest and penalties on the tax debt will continue to accrue.

Find all 433 forms and related publications at https://www.irs.gov/forms-instructions-and-publications. Just type “Form 433” in the Find box and click search.

Tax Lien Forms

Form 12277: Tax Lien Withdrawal Request

This form asks the IRS to withdraw a filed Notice of Federal Tax Lien (NFTL). Although Form 12277 may remove public notices of the lien, the tax debt remains.

You will need to explain why you want public withdrawal of the tax lien and provide relevant documentation supporting your explanation. The IRS will assess the request and may request additional information before deciding to withdrawal your lien.

Get the Tax Lien Withdrawal request form and Form 12277 instructions here: https://www.irs.gov/pub/irs-pdf/f12277.pdf.

Form 14134: Tax Lien Subordination Request

Form 14134 allows taxpayers to ask the IRS to give other creditors priority over their tax lien without removing the lien. Typically used by individuals trying to refinance or get new loans, 14134 prioritizes lenders over IRS collections.

The form requires property value information and a list of the taxpayer’s debts. In addition, you must show how subordination benefits the IRS or helps pay the tax debt by providing documents like appraisals and loan details.

Find the Tax Lien Subordination request form at https://www.irs.gov/pub/irs-pdf/f14134.pdf.

Publication 784 contains more detailed information for how to complete Form 14134: https://www.irs.gov/pub/irs-pdf/p784.pdf.

Form 14135: Tax Lien Discharge Request

Form 14135 helps property owners deal with tax liens when selling or refinancing homes, rentals, or other property types. It must be filed 45 days before a sale and contain details regarding the property’s value and sale price.

Discharge reasons include having other assets worth twice the tax debt, paying the IRS their property interest, or proving the IRS’s claim is worthless.

Appraisals and deeds are typically needed as well. The IRS reviews the form and may ask for more info before deciding.

The Tax Lien Discharge request form is available at https://www.irs.gov/pub/irs-pdf/f14135.pdf. For additional information on how to complete Form 14135, look at Publication 783 here: https://www.irs.gov/pub/irs-pdf/p783.pdf.

Innocent Spouse and Injured Spouse Forms

Innocent Spouse Relief Form 8857

Form 8857 requests relief from joint tax debts caused by the actions of a spouse or ex-spouse. The form requires details about the tax return in question and an explanation as to why the spouse thinks they do not owe taxes and deserve relief.

Before deciding, the IRS looks at the spouse’s financial condition and the possible lack of knowledge about the other spouse’s or ex-spouse’s unpaid taxes.

To learn more about Innocent Spouse Relief and Form 8857, go to https://www.irs.gov/forms-pubs/about-form-8857. Get a copy of the Innocent Spouse Relief form at https://www.irs.gov/pub/irs-pdf/f8857.pdf and instructions at https://www.irs.gov/instructions/i8857.

Injured Spouse Relief Form 8379

Form 8379 lets married taxpayers recoup their share of a tax refund used to pay off their partner’s debts, such as unpaid taxes or child support.

You can file this form with your tax return or later. You must split your income, tax credits, and payments between you and your spouse when filling out an 8379.

The IRS will likely approve your request if you can show that you do not owe the debt and deserve part of the refund.

More information about requesting Injured Spouse Relief can be found here: https://www.irs.gov/forms-pubs/about-form-8379. You can get the Innocent Spouse Relief form at https://www.irs.gov/pub/irs-pdf/f8379.pdf, and Form 8379 Instructions are available here: https://www.irs.gov/instructions/i8379.

IRS Penalty and Payment Related Forms

IRS Penalty Abatement Form 843

Taxpayers requesting the abatement (reduction) of specific penalties related to failure to file, pay, or deposit need to submit Form 843 to the IRS.

Taxpayers eligible for first-time penalty abatement must demonstrate a strong tax compliance history for the preceding three tax years. The form asks for a detailed explanation of the penalty abatement request, including any reasonable cause for a specific failure.

Learn more about the Penalty Abatement form at https://www.irs.gov/forms-pubs/about-form-843. Form 843 and instructions are available at https://www.irs.gov/pub/irs-pdf/f843.pdf and https://www.irs.gov/instructions/i843.

IRS Tax Payment Extension Form 1127

This form is to help taxpayers facing financial or personal hardship who require more time for tax payments. You must provide documents that support your claim and explain that making payments would cause severe financial distress.

The IRS typically grants a maximum extension of six months upon approving this request.

Get a copy of Form 1127 to request a tax payment extension at https://www.irs.gov/pub/irs-pdf/f1127.pdf.

IRS Appeal Forms

Form 9423: Collection Appeal Request

A Collection Appeal Request should be submitted to the IRS if you want to challenge collections actions, such as attempts to seize property, refusals to set up payment plans, or to terminate existing agreements.

You may also use Form 9423 to contest tax lien filings. Taxpayers must explain why they disagree with the IRS’s decision by presenting evidence supporting their collection appeal.

Find the Collection Appeal request form and Form 9423 instructions here: https://www.irs.gov/pub/irs-pdf/f9423.pdf.

Form 12153: Collection Due Process Hearing Request

Taxpayers requesting a hearing to appeal an IRS lien or levy action can submit Form 12153 within 30 days of receiving a collections notice. This form allows taxpayers to propose alternative tax payments, such as an installment agreement or OIC.

You can also use 12153 to dispute existing tax debts. Once you file the form, the IRS typically halts collection activities pending the hearing.

Form 12153 for requesting a Collection Due Process Hearing and its instructions are available at https://www.irs.gov/pub/irs-pdf/f12153.pdf.

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