Form 433-D: Fill & Download for Free

A 433-D is an Installment Agreement Form. It is used after a Financial Information Statement Form 433A, etc. is completed (separate Form for an individual, corporation or self employed). I am assuming that the Form 433 D was received by mail after a verbal payment was negotiated by telephone. The Form 433D should have been accompanied with a letter containing instructions regarding the mailing or faxing the completed/signed Installment Agreement.

Fill out:Form 9465Form 433-FForm 433-DCall the IRS.They’ll ask you to fax over the forms (yes I really do mean fax) and then give you a different number to pay every month, argue accordingly.Repeat until accepted.

There are three types of penalties, related to late filing and/or paying individual income taxes: 1) Estimated Tax Penalty; 2) Late Filing Penalty; and 3) Late Payment Penalty. Interest can and will accrue on all three.Estimated Tax Penalty. Ours is a system of “pay as you go.” That means you are supposed to pay one quarter of the tax due on or before April 15, June 15, September 15, and January 15. There is an exception for those whose income does not come in regular cycles, but is rather subject to fluctuations. Still, you should pay in at least 90% of last year’s tax during the year, unless your income is above certain thresholds, I’m which case you must pay in 100% or even 110% of last year’s tax.Late Filing Penalty. If you don’t file either a return or an extension by the filing deadline of April 15 (it was pushed back to July 15 this year only, due to the Coronavirus pandemic), there is a late filing penalty charged.Late Payment Penalty. If you don’t pay the total amount due by the filing deadline (also extended to July 15 this year), the is also a penalty assessed for that.These penalties are all computed based on the amount that is outstanding. Thus, if you make a payment by the due date and then request an Installment Agreement (via Form 9465) to pay the remaining balance over a period of time not to exceed three years, interest and penalties will accrue on the outstanding balance, but not on the original amount due. Provided the total amount due is under $10,000, the IRS will generally accept any offer and will not impose liens or otherwise take more aggressive steps to collect the tax that may impact your credit. There is a fee for the Agreement that will be reduced if you agree to have the payments taken automatically via debit from your bank account.If you owe over $10,000 but under $25,000, you may still apply for an Installment Agreement, but you must file Form 433-D and, of over $25,000 you must also file Form 433-F to provide current financial information. The Service may place a lien on your assets that will negatively impact your credit.If you owe between $50,00 and $100,000, the collections activity will be more aggressive and they will require additional documentation.Finally, if you owe in excess of $100,000, a Revenue Officer will be assigned to your case and things can get ugly, depending how compliant you are at making dependable payments, filing all tax returns when due, and keeping up with any and all current tax obligations.The key to all of the above is responding immediately to any and all correspondence from the IRS. Failure to respond can result in levies (freezing of bank accounts), seizures of assets, liens on property owned, and garnishment of wages and other forms of compensation.Most are best advised to contact a tax professional, if they owe more than $10,000 and/or cannot make required installment payments when promised or agreed to.