Form 13844: Application For Reduced User Fee For Installment Agreements
Having trouble paying your taxes in full? The IRS offers installment agreements as a way to spread out your tax debt over time. However, there's a user fee associated with setting up this payment plan. Form 13844 helps low-income taxpayers potentially reduce or eliminate this fee.
What is Form 13844?
Form 13844 is an official IRS document used by individuals to apply for a reduced user fee when entering into an installment agreement. The standard user fee can be lowered to $43 for qualified applicants. In certain cases, the fee can even be waived or reimbursed entirely.
Who Qualifies for a Reduced Fee?
The IRS considers you a low-income taxpayer for installment agreement purposes if your adjusted gross income (AGI) from the most recent tax year falls at or below 250% of the poverty guidelines established annually by the U.S. Department of Health and Human Services (HHS).
You can find the current poverty guidelines on the HHS website (https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines/poverty-guidelines-api).
How to Apply for a Reduced Fee?
A. Gather Documents: You'll need a copy of your latest tax return to verify your AGI.
B. Complete Form 13844: The form is straightforward and asks for basic information like your name, address, Social Security number, and tax year involved. You'll also need to indicate whether you can make electronic payments via direct debit.
C. Submit the Application: Mail the completed form (and Form 433-A if your income recently decreased) to the IRS address provided on the form.
What are the Fee Reduction Options?
Reduced Fee ($43): If you qualify as a low-income taxpayer but cannot make electronic payments, the user fee may be reduced to $43.
Fee Waiver: If you're a low-income taxpayer who agrees to make electronic payments via direct debit, the user fee is entirely waived.
Fee Reimbursement: If you qualify as low-income but cannot use direct debit, you may be eligible for a reimbursement of the user fee after successfully completing your installment agreement.
What if I Didn't Initially Qualify as Low-Income?
The IRS may not automatically identify you as low-income. If you believe you meet the criteria, use Form 13844 to request reconsideration within 30 days of receiving your installment agreement acceptance letter.
What Happens After I Submit Form 13844?
The IRS will process your application and notify you of their decision. If approved for a reduced fee, the difference between the standard fee and the reduced amount will be applied towards your tax debt.