Form 2159

What is Form 2159?

The 2159 form is a vital document utilized by the IRS, the United States’ official revenue service agency, to administer tax laws. Known as IRS form 2159, it enables taxpayers who owe federal taxes to coordinate with the IRS and their employer through a specific payroll deduction agreement. This process allows the employer to withhold a predetermined amount from the taxpayer's wages each pay period to aid in the repayment of taxes owed.

Undertaking this process does not absolve taxpayers from their responsibility of filing their tax returns and making required payments. This method is an additional avenue to clear their tax debts and restore their good standing with the IRS.

How To Fill Out IRS Form 2159 Instruction

Employer Information:

In the "to" Section, fill in your employer's name and the contact person. The contact person should be someone the IRS can contact if they have any questions.

Taxpayer Information:

In the "Regarding" section, provide your details, including your name, Social Security Number (SSN), and phone numbers. Below that, enter the name of your financial institution.

Tax Details:

Specify the type of taxes you owe in the relevant section. For most taxpayers, this will be form 1040. Include the tax years you owe and the total amount owed as of a specific date. You can find this information in IRS notices or by contacting the IRS.

Payment Details:

Indicate how frequently you are paid and the amount you agree to have deducted from each paycheck. Adjust this amount according to your pay frequency to match the monthly agreed amount.

Changes in Payment Amount:

If there are any agreed-upon changes in the payment amount over time, include these in the increase/decrease section of the form.

Taxpayer Signature:

Sign and date at the bottom of the first page of the form.

Employer's Section:

Your employer must complete a section of the form agreeing to deduct the payments from your pay. They need to indicate how often you are paid and sign and date the form, including their title within the company. This signature confirms their agreement to withhold the installment agreement amounts and remit them to the IRS on your behalf.

Remember, the taxpayer and the employer must complete portions of this form before it is returned to the IRS. It's a collaborative process that ensures your installment payments are correctly set up and deducted from your paycheck.

How To File Form 2159 Payroll Deduction

After completing the form correctly, hand it over to your employer for them to fill their part. Once the employer fills out their part and confirms the agreement, they must send the completed form to the IRS using their specified mailing address. Only after the IRS approves the agreement can the employer start making the designated deductions from your paycheck. It is crucial to note that deductions should begin only after getting IRS approval.

Where To Mail Payments IRS Form 2159

Completed form 2159 should be mailed to the IRS at a specified address, depending on the taxpayer's location. Such specifics are regularly updated on the official IRS website. Remember, the employer and the employee must retain a copy of form 2159 for their records. Going through this process diligently under the poised guidance of an expert tax advisor can significantly help you navigate the complexities that sometimes accompany tax forms.