Filing IRS.gov Form 13844 for a Reduced User Fee

When facing a tax liability that cannot be paid in full, many individuals turn to an installment agreement with the Internal Revenue Service. This allows for monthly payments until the debt is settled. Setting up such a plan involves a user fee, but this cost can be a hurdle for some. The IRS provides a path for relief through Form 13844, Application for Reduced User Fee for Installment Agreements. This form is for taxpayers who qualify as low-income and wish to pay a smaller fee to establish their payment plan.

Determining Eligibility for the Reduced Fee

Qualification for the reduced user fee hinges on the IRS’s definition of a “low-income taxpayer.” An individual’s adjusted gross income (AGI) for the most recent tax year must be at or below 250% of the poverty guidelines issued by the U.S. Department of Health and Human Services (HHS). These guidelines vary based on the size of the family unit, so the income threshold for a single person is different from that for a family of four.

To check for eligibility, a taxpayer must determine their AGI from their latest tax return and find the current HHS Poverty Guidelines, which are available on the HHS website. It is important to use the table corresponding to the correct year and family size. The guidelines also provide separate, higher income thresholds for residents of Alaska and Hawaii. By comparing their AGI to 250% of the poverty level for their household size, a taxpayer can determine if they meet the financial criteria.

If the IRS’s online system does not automatically identify a person as a low-income taxpayer, Form 13844 is the tool to request this status. The fee for those who qualify is reduced to $43. This fee may be waived entirely if the taxpayer agrees to make payments via a direct debit installment agreement (DDIA). For those who qualify as low-income but cannot make electronic payments, the IRS may reimburse the $43 fee after the installment agreement is successfully completed.

Required Information for Form 13844

Before filling out Form 13844, gathering the correct information helps ensure accuracy. The form requires basic identification details, including the taxpayer’s full name as it appears on their tax return, their current mailing address, and their taxpayer identification number, which is typically a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

The core of the application is certifying low-income status. This involves confirming that the taxpayer’s AGI is at or below the 250% threshold of the federal poverty guidelines. The form requires the applicant to enter their family size and AGI from the most recent year. The applicant must then check a box to attest to their qualification and sign and date the form under penalty of perjury.

Form 13844 does not stand alone; it must be submitted along with Form 9465, Installment Agreement Request. This application serves to reduce the fee associated with the payment plan requested on Form 9465. Taxpayers should always use the most current version of Form 13844, which can be downloaded from the IRS website to avoid using an outdated document.

Submitting the Application

Once both forms are completed, the completed Form 13844 should be physically attached to the front of Form 9465. This placement ensures that the request for a reduced user fee is seen when the installment agreement request is processed, preventing the application from being overlooked.

The mailing address for the completed forms varies depending on the taxpayer’s geographic location. The correct address is not on Form 13844 but in the instructions for Form 9465. Taxpayers must consult these instructions carefully to identify the specific IRS service center for their region to avoid processing delays.

After mailing the application package, the taxpayer will receive a letter of notification in the mail. This correspondence will state whether the installment agreement has been approved and will confirm the decision regarding the reduced user fee, reflecting the lower amount if the application was successful.