Yes, TurboTax can send the necessary paperwork to the IRS, but there are a few important details about how the "approval" process actually works.
When you file your taxes and indicate that you ...
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Yes, TurboTax can send the necessary paperwork to the IRS, but there are a few important details about how the "approval" process actually works.
When you file your taxes and indicate that you cannot pay the full amount, TurboTax will help you include Form 9465 (Installment Agreement Request) with your return.
It is important to know that the IRS doesn't typically give "pre-approval." Instead, the process looks like this:
Submission: TurboTax sends your tax return along with your payment plan request.
If you owe $10,000 or less (excluding penalties and interest), the IRS is generally required to accept your plan as long as you’ve filed on time for the last 5 years and can pay it off within 3 years.
If you owe between $10,000 and $50,000, you can usually get a "streamlined" agreement that doesn't require a deep dive into your finances.
Even though you've sent the request, the IRS may take 30 to 90 days to formally process it. They will send you a confirmation letter (Notice CP521 or CP523) in the mail once it is officially active.
To apply, and if you haven't submitted your return, follow these steps to submit.
Navigate to the File tab.
On the screen that asks "How would you like to pay your federal taxes?", select "Request an IRS payment plan."
TurboTax will then walk you through the questions for Form 9465.
Once finished, your request will be attached to your return and sent to the IRS electronically.