IRS Form 433-D is used by taxpayers to establish an Installment Agreement with the IRS, allowing them to pay off their tax debt over time in monthly installments. This form is typically used when taxpayers agree to make payments directly from their bank account, ensuring that payments are made on time and reducing the risk of default.
The form requires taxpayers to provide:
- Their bank account information for automatic withdrawals.
- The monthly payment amount they agree to pay.
- A proposed payment schedule.
Once the form is submitted and the IRS approves the agreement, the taxpayer is required to make monthly payments until the debt is paid in full. If the taxpayer fails to make a payment, the agreement may be defaulted, and the IRS may resume collection actions, such as levies or liens.
Form 433-D is an essential tool for taxpayers who need more time to pay their tax debt and want to avoid more severe enforcement actions.