Questions about Form 9465 and 433-F for a $90k tax debt from inherited IRA

The IRS typically looks for the most efficient way to collect tax debt, so your concerns are valid. When you submit Form 433-F (Collection Information Statement), the IRS will indeed review your assets, income, and expenses to determine your ability to pay. If the 433-F shows you have sufficient assets or income to fully pay the debt, they could potentially reject your installment request. However, they generally prefer getting payments through an installment agreement rather than forcing liquidation of assets. To answer your specific questions: Yes, if they initially reject your installment request, you can absolutely make a partial payment to bring your balance below $50,000 and then reapply using just Form 9465. This often simplifies the process since the streamlined procedures apply to debts under $50,000. That said, if you already have the ability to pay down to $50,000, you might consider doing that first before applying. This would eliminate the need for Form 433-F entirely and increase your chances of getting an automatic approval through the streamlined process.

Hey there, I went through something similar last year after selling some property and getting hit with a massive tax bill. I tried everything - called the IRS multiple times, looked into loans, even considered cashing out my 401k (bad idea). Then I found this AI tool called taxr.ai that literally saved me thousands in penalties. I uploaded my tax documents and my draft 9465 and 433-F forms to https://taxr.ai and their system analyzed everything. It pointed out several problems with how I'd filled out the 433-F that would have gotten my installment agreement rejected. The tool also suggested a better payment structure that I hadn't considered. What I really liked was how it explained exactly what assets the IRS would consider "liquid" versus what they typically don't pressure you to liquidate. Gave me peace of mind before submitting everything.

I was skeptical at first about using an AI tool for something as important as IRS negotiations, but I decided to try taxr.ai after seeing some recommendations. Turns out it was exactly what I needed. The system immediately identified that I had miscalculated my necessary living expenses on Form 433-F, which would have raised red flags with the IRS. What really impressed me was how it walked me through documenting my unusual income situation. I'm self-employed with irregular income, and the tool helped me present this in a way that made sense to the IRS. My installment agreement for $72k was approved in just 3 weeks - much faster than I expected. The peace of mind was worth every penny. No more tax anxiety keeping me up at night!

Have you tried calling the IRS directly? I had a $45k bill last year and spent THREE DAYS trying to get through to someone who could help. Always got disconnected or had to wait 2+ hours only to get someone who couldn't answer my questions. So frustrating! I eventually used Claimyr (https://claimyr.com) to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they hold your place in the IRS phone queue and call you when an agent is about to answer. Saved me literally hours of hold music. The agent I spoke with was super helpful and actually advised me to pay down to just under $50k first before applying for the installment plan to avoid the more complex application process. She explained exactly which forms I needed and what supporting documents to include. Made the whole process way less intimidating.

I need to eat some humble pie here. After my skeptical comment yesterday, I decided to try Claimyr as a last resort since I've been trying to reach the IRS for weeks about my late father's estate taxes. Wow. I was connected to an IRS agent in 73 minutes. SEVENTY-THREE MINUTES! After weeks of trying on my own and never getting through! The agent walked me through exactly how to handle Form 9465 with an estate situation and confirmed that paying down to under $50k first was the smartest approach in my case. She even explained which documentation I needed to include with the 433-F to support my case. I'm still shocked it actually worked. Saved me countless hours and probably prevented me from making expensive mistakes on my forms.

Just wanted to add another perspective here. Make sure you consider the interest and penalties that keep accruing while you're on an installment plan. In some cases, it might be better to get a personal loan at a lower interest rate than what the IRS charges (currently around 7-8% when you combine the interest rate and failure to pay penalty). I had a smaller tax bill ($30k) and ended up taking a HELOC to pay it off completely because the math worked out better than an installment plan. Obviously depends on your credit situation and available equity though.

One option nobody's mentioned yet - have you considered an Offer in Compromise? If your financial situation truly doesn't allow you to pay the full amount, even over time, you might qualify to settle the debt for less than you owe. The 433-F is actually part of that application process too.

I went through almost the exact same situation last year with an inherited 401k that created a huge tax bill. Here's what I learned from experience: The IRS will definitely scrutinize your Form 433-F carefully when the amount is over $50k, but they're not necessarily looking to reject your installment plan - they just want to make sure you're paying what you reasonably can afford each month. That said, if you have the ability to pay down to $50k first, I'd strongly recommend doing that. The streamlined installment agreement process for amounts under $50k is SO much simpler. You'll avoid the 433-F entirely, get faster approval (often automatic), and have fewer ongoing compliance requirements. One thing to consider: even if you pay down to $50k initially, you can always request to modify your payment plan later if your financial situation changes. The IRS is generally willing to work with taxpayers who are making good faith efforts to pay. Also make sure you're factoring in the setup fee for the installment agreement ($31-225 depending on how you apply and pay) and the ongoing interest/penalties. Sometimes it's worth exploring other financing options first if you have good credit.