Proof of IRS Installment Agreement: How to Get One and Why You Need It
If you owe taxes to the IRS but can`t pay them in full, an installment agreement can be a helpful solution to get your debt under control. An installment agreement allows you to pay your tax debt over time, instead of all at once.
But what happens when you are required to provide proof of your installment agreement to a third party, such as a mortgage lender or a potential employer? In this case, you will need to obtain a proof of installment agreement from the IRS.
In this article, we will discuss what a proof of installment agreement is, how to request it from the IRS, and why you will need it in various situations.
What is a Proof of Installment Agreement?
A proof of installment agreement is a document that verifies that you have entered into an installment agreement with the IRS to pay your tax debt over time. It usually contains information such as the amount you owe, the terms of the agreement, and the dates and amounts of your payments.
A proof of installment agreement is a legal document that shows that you have resolved your tax debt with the IRS and are making progress towards full payment. This document is important to have if you need to prove to any third party that you are in compliance with your tax obligations.
How to Request a Proof of Installment Agreement
If you need a proof of installment agreement, there are two ways to request it from the IRS: online or by mail.
Online Request: You can request a proof of installment agreement from the IRS online by logging in to your account on the IRS website. Once you have logged in, go to your account summary and select the installment agreement you need proof for. Then, choose the option to request a proof of installment agreement document.
By Mail: Alternatively, you can request a proof of installment agreement by mail. You will need to complete Form 9465 and mail it to the IRS at the address listed on the form. Be sure to include your name, current address, and your tax identification number (SSN or EIN).
Why You Need a Proof of Installment Agreement
There are several situations where you may need to provide a proof of installment agreement to a third party:
Mortgage Lenders: If you are applying for a mortgage or refinancing your current mortgage, most lenders will require you to provide proof that you are making your installment payments. This is to ensure that you are in compliance with your tax obligations and are not at risk of having a tax lien placed on your property.
Employers: Some employers may require a proof of installment agreement as part of a background check or employment verification process. This is to ensure that you are in good standing with the IRS and are not at risk of wage garnishment.
Creditors: If you owe money to a creditor, they may require proof that you are making installment payments to the IRS. This is to ensure that you are in compliance with your tax obligations and are not at risk of having a tax lien placed on your property.
In summary, obtaining a proof of installment agreement from the IRS is a simple process that can help you verify your compliance with your tax obligations. It`s important to have this document on hand if you need to prove your tax status to a third party, such as a mortgage lender or employer. Remember, having an installment agreement in place can help you resolve your tax debt and get your finances back on track.