IRS Form 9465 (2020): Installment Agreement Request

What IRS Form 9465 (2020) Is For

IRS Form 9465 (2020) is used when taxpayers need an installment agreement that allows them to pay their tax debt over time, rather than paying the full amount owed immediately. The form helps taxpayers request a payment plan that divides their unpaid balance into monthly payments that fit their budget while staying compliant with IRS rules. 

For a complete walkthrough of the form, visit our IRS Form 9465: Installment Agreement Request Guide.

When You’d Use IRS Form 9465 (2020)

Taxpayers rely on IRS Form 9465 (2020) when specific financial or filing situations require a structured payment plan.

1. Post-filing a tax return with a balance due: Taxpayers use the form when they file or electronically file a return and cannot pay the full tax bill shown as the amount they owe.
   
   
2. Receiving an IRS notice for combined tax: Taxpayers may submit the form when the IRS sends a notice that reflects additional assessments, amendments, or combined tax balances that they cannot pay immediately.
   
   
3. Unable to pay through a short-term payment plan: Taxpayers use this form when they cannot pay their balance within 120 days and instead need a long-term payment plan with monthly installment payments.
   
   
4. Applying for a payment plan: Taxpayers rely on this form when they cannot apply online, prefer to mail their request, or visit an IRS office in person.
   
   
5. Requesting a plan for multiple tax years: Taxpayers may use the form to request an installment agreement that covers more than one year.

Learn about additional IRS payment plan options available for taxpayers who cannot pay their tax bill in full.

Key Rules or Details for 2020

Several important rules applied to IRS Form 9465 (2020) because of the requirements for installment agreements during that tax year.

• Streamlined installment agreements for balances of fifty thousand dollars or less: Taxpayers qualified for simplified processing without submitting financial statements when their total tax debt stayed at or below this limit.
  
  
• Guaranteed installment agreements for balances of ten thousand dollars or less: Taxpayers who met filing history rules and agreed to pay within three years were automatically approved for an installment agreement.
  
  
• Set up fee differences based on how the plan is created: Taxpayers paid lower fees when they used direct debit or applied online, and higher costs when they applied by mail or in person.
  
  
• Low-income taxpayer fee reductions and waivers: Low-income taxpayers may have been eligible for fee waivers or reimbursements when they agreed to make payments through direct debit.
  
  
• Interest and penalties continued to be applied until the balance was paid: The IRS continued to apply interest and penalties to any unpaid balance throughout the duration of the installment agreement.

If you’re concerned about added costs, see if you qualify for penalty abatement to reduce your IRS charges.

Step-by-Step (High Level)

The following steps outline how taxpayers complete IRS Form 9465 (2020) and submit a valid installment agreement request.

1. Gather documents and personal information: Taxpayers should collect their tax return, IRS notices, social security number, banking information, and any other relevant documents that show the total amount owed.
   
   
2. Select your payment method: Taxpayers choose whether to pay through direct debit, check, money order, or card payments, and understand that the selected method affects the setup fee.
   
   
3. Calculate a realistic monthly payment amount: Taxpayers determine a monthly installment plan based on their unpaid balance and choose an amount that fits their income and budget.
   
   
4. Complete Part I of the form: Taxpayers provide identifying information, the proposed payment amount, and a monthly payment date while ensuring that all bank account details used for direct debit are correct.
   
   
5. Complete Part II only when required: Taxpayers complete this section when they owe more than certain thresholds or propose a payment amount that prompts the IRS to request financial information.
   
   
6. Submit the form: Taxpayers should send the form by mail or follow the IRS instructions for submission, including any initial payment they are prepared to make.

You can use our IRS Account Transcript Service to obtain your tax records before completing your request.

Common Mistakes and How to Avoid Them

• Not filing all required tax returns first: The IRS denies installment agreements when any return is missing, so taxpayers must ensure every required return is filed before submitting the form.
  
  
• Choosing a payment amount that is too low: A payment that is unrealistically small increases the likelihood of an IRS review or denial; therefore, taxpayers should propose an amount that reasonably aligns with their income and financial situation.
  
  
• Not using direct debit when eligible: Avoiding direct debit can result in higher setup fees and an increased risk of late payments. Therefore, taxpayers should select direct debit to keep costs lower and ensure consistent payments.
  
  
• Submitting incorrect banking information: Incorrect account or routing numbers prevent automatic withdrawals, so taxpayers should verify all banking details before filing the form.
  
  
• Missing the monthly payment date: Late monthly payments may trigger default, so taxpayers should choose a payment date that aligns with their pay schedule.
  
  
• Applying by mail instead of applying online when eligible: Applying by mail increases fees and processing times, so taxpayers should apply online whenever the IRS system allows it.

For more on what happens after you file, review our guide to the IRS collection process and your taxpayer rights.

What Happens After You File

After filing IRS Form 9465 (2020), the IRS generally sends a written response confirming whether the request has been approved or denied. Approved agreements outline the monthly payment date, user fee charges, and whether direct debit or mailed payments will be used. The IRS may apply future refunds to the unpaid balance and may file a tax lien if necessary to protect its interest. Taxpayers can modify their agreement with the IRS later if their financial circumstances change.

FAQs

How do I choose the right monthly payment amount for IRS Form 9465 (2020)?

Taxpayers should select a monthly payment amount that aligns with their income while still addressing the unpaid balance within a reasonable timeframe. The IRS may request financial information if the proposed payment is too low, so selecting an amount that reflects actual budget limits is essential.

Can I apply for a payment plan online instead of mailing the form?

Yes, eligible taxpayers can apply online through the IRS payment plan system, which generally results in a lower setup fee and faster processing. The online option is also convenient for taxpayers who prefer not to submit documents by mail or in person.

What happens if I miss a monthly payment under my installment agreement?

Missing a payment may cause the agreement to enter default, and the IRS may send a notice requesting immediate action. Taxpayers should contact the IRS promptly if they expect difficulty making a payment, so options for adjusting the plan can be discussed.

Can IRS Form 9465 (2020) be used for more than one tax year?

Yes, the form can include multiple assessed balances if the IRS has already processed each liability. Taxpayers should review their notices to ensure all amounts are accurate before submitting a combined request that covers more than one year.