IRS Installment Plan

[XYZ77]

Is there a way to add the balance due for last years taxes to a balance from 2022 without defaulting on the existing payment plan? Or would I need to pay off the current 2022 balance prior to filing/processing of my 2023 return to apply for a new installment plan?

[Jackstar221]

You may be able to add the balance due for last year to your current payment plan without defaulting, here are some things to keep in mind:

1.Get a hold of the IRS by phone. You will need to ask if the new balance can be added to your existing installment agreement. You may also be able to call the number on your recent IRS statement.

2.If you prefer, you can submit a new Form 9465, Installment agreement request, and indicate you would like to add the new balance to your current agreement. This can be done online, or through the mail.

3.It is imperative to address the new balance as soon as possible. Not taking action could lead to future penalties and interest.

[mbpeddie]

Hello,

Yes you can add a balance from 2023 to an existing installment agreement from 2022. You do not have to pay the existing balance off before filing your taxes. You shoud continue to make the payments on the existing installment agreement until the new one is accepted by the IRS.

You can request an amendment to the installment agreement by:

1. Calling the IRS at 1-800-829-7650.
2. Visiting a local IRS office.
3. Completing Form 9465 with information about both the original agreement balance and the expected new balance.

When you complete the new Form 9465, Line 5 will be the amount you owe for 2023 and line 6 will be the amount that are on the previous agreement. The new balance will  carry to line 7 of the Form 9465.

Here is a link to the Form 9465:

https://www.irs.gov/pub/irs-pdf/f9465.pdf

I hope this answers your question.

Mary, Tax expert