Form 9465 Installment Agreement Request Checklist
Purpose of Form 9465
Form 9465 serves as the official IRS document for requesting an installment agreement, allowing taxpayers to pay their tax debt over time through structured monthly payments. This form provides individuals and entities with a formal process to propose manageable payment plans, helping avoid enforced collection actions such as levies or liens. By establishing an installment agreement, taxpayers can resolve their tax obligations while maintaining financial stability and meeting other essential expenses.
Who Should Use Form 9465
Form 9465 is appropriate for individuals who owe income tax on Form 1040 or 1040-SR, taxpayers who are or may be responsible for a trust fund recovery penalty, individuals who owe employment taxes related to a sole proprietor business that is no longer in operation, or taxpayers who owe an individual shared responsibility payment under the Affordable Care Act for months beginning before December 31, 2018. The form provides a structured approach to resolving tax debt when immediate payment in full is not financially feasible.
Who Should Not Use Form 9465
Do not use Form 9465 if you can pay the full amount you owe within 180 days. If you plan to pay the taxes, interest, and penalties due in full within this timeframe, you can save the cost of the user fee by calling the IRS at 800-829-1040 or applying for a short-term payment plan through the online payment agreement application. Additionally, do not use this form if you want to request a payment plan online, as the online application process offers reduced fees and faster processing.
Businesses that are still operating and owe employment or unemployment taxes should not use
Form 9465; instead, they should call the telephone number on their most recent notice to request an installment agreement. Taxpayers who are in bankruptcy or have a pending or accepted Offer in Compromise should not file this form; instead, they should contact the appropriate IRS office for their specific situation.
Online Application Alternative
If your balance due is not more than $50,000, you can apply online for a payment plan instead of filing Form 9465. The online payment agreement application at IRS.gov/OPA offers several
advantages, including lower user fees, immediate response in most cases, and the elimination of mailing delays. Establishing your installment agreement through the online application results in a reduced user fee compared to submitting the paper form. The online system provides instant feedback on eligibility and approval status, streamlining the entire process.
Step-by-Step Procedure for Completing Form 9465
Step 1: Enter Personal Identification Information
Fill in the taxpayer’s full name and social security number accurately in the designated spaces.
If you are making this request for a joint tax return, show the names and social security numbers in the same order as they appear on your tax return.
Enter your current mailing address, including street number, apartment or suite number if applicable, city, state, and ZIP code. If you have a foreign address, enter the city name on the appropriate line and complete the spaces below with the country name, province or state, and foreign postal code. If the address you provide is new since you filed your last tax return, check the box indicating the address change.
Step 2: Provide Business Information if Applicable
If you are requesting an installment agreement for employment taxes related to a sole proprietor business that is no longer operating, enter the name and employer identification number of your business in the designated section. This information helps the IRS properly identify and process your request for the specific tax liability.
Step 3: Calculate Total Amount Owed
Enter the total amount you owe as shown on your tax return or notice on the designated line.
The amount you owe could include amounts from more than one tax year. If you have additional balances due that are not reflected in this amount, list the total on the next line, even if they are included in an existing installment agreement. Any adjustments or other charges not reported on a tax return or notice should also be listed here. Add these amounts together to determine your total outstanding balance.
Step 4: Make Initial Payment if Possible
Even if you cannot pay the full amount you owe now, you should pay as much as possible to limit penalty and interest charges. If you are filing this form with your tax return, make the payment with your return according to your tax return instructions. If you are filing this form by itself in response to a notice, attach a check or money order made payable to the United States
Treasury. Do not send cash. Include your name, address, social security number or employer identification number, daytime phone number, and the tax year and tax return for which you are
making this request on your payment. Subtract any payment you are making now from your total amount owed to determine your remaining balance.
Step 5: Propose Monthly Payment Amount
Enter the amount you can pay each month on the designated line. Make your payments as large as possible to limit interest and penalty charges, which will continue to accrue until you pay them in full. If you have an existing installment agreement, this amount should represent your total proposed monthly payment amount for all your liabilities.
If no payment amount is listed, a payment will be determined for you by dividing the balance due by 72 months. Consider your monthly income and necessary expenses when proposing a realistic payment amount that you can consistently maintain throughout the agreement period.
Step 6: Determine if a Financial Statement is Required
Follow the specific guidelines based on your proposed payment amount and total balance owed. If your proposed monthly payment is less than the calculated minimum and you can increase your payment, enter your revised monthly payment proposal on the designated line. If your proposed payment is less than the calculated minimum and you are unable to increase your payment, check the appropriate box and complete and attach Form 433-F, Collection
Information Statement.
If the amount you owe is greater than $25,000 but not more than $50,000, you must complete either the direct debit section or the payroll deduction option if you do not want to complete
Form 433-F. If the amount you owe is greater than $50,000, complete and attach Form 433-F to provide detailed financial information supporting your proposed payment amount.
Step 7: Select Payment Due Date
Choose the day of each month your payment is due. This can be on or after the 1st of the month, but no later than the 28th of the month. Consider your monthly financial obligations when selecting a payment due date to ensure you can meet them. For example, if your rent or mortgage payment is due on the 1st of the month, you may want to make your installment payments on the 15th to ensure funds are available. When the IRS approves your request, they will notify you of the month and day that your first payment is due.
Step 8: Provide Banking Information for Direct Debit
To pay by direct debit from your checking account at a bank or other financial institution, fill in the routing number and account number in the designated spaces. Verify with your financial institution to ensure that direct debit is permitted and to obtain the correct routing and account numbers. The routing number must be nine digits, and the first two digits must be 01 through 12 or 21 through 32. Use a check to verify the routing number. The account number can be up to
17 characters, including both numbers and letters. Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. Making your payments by direct debit helps ensure that your payments are made on time and you do not default on the installment agreement. Low-income taxpayers who complete the direct debit information will receive a waiver of their installment agreement user fees.
Step 9: Consider Low-Income Taxpayer Options
If you are a low-income taxpayer unable to make electronic payments through direct debit, check the appropriate box to indicate your eligibility for fee reimbursement. Low-income taxpayers are defined as those with adjusted gross income for the most recent tax year available at or below 250% of the federal poverty guidelines.
If you check this box, your installment agreement user fee will be reimbursed upon completion of your installment agreement. If you do not check the box and do not provide direct debit information, you are indicating that you are able but choosing not to make electronic payments, and your user fee is not eligible for reimbursement upon completion of your installment agreement.
Step 10: Arrange Payroll Deduction if Preferred
If you want to make your payments by payroll deduction, check the appropriate box and attach a completed and signed Form 2159, Payroll Deduction Agreement. Ask your employer to complete and sign the employer’s portion of Form 2159. Payroll deduction provides automatic payment directly from your wages, helping ensure consistent and timely payments throughout the agreement period.
Step 11: Complete Additional Information if Required
If you have defaulted on an installment agreement within the last 12 months, the amount you owe is greater than $25,000 but not more than $50,000, and your proposed payment amount is less than the calculated minimum, complete Part II on page 2 of Form 9465. This section requests additional information about your financial situation, including details about your employment, household income, and monthly living expenses.
Complete the lines relating to income earned by your spouse if you are married and either live with and share household expenses with your spouse, or you live in a community property state where your spouse’s income may be factored into your ability to pay the taxes owed.
Step 12: Sign and Date the Form
Sign and date Form 9465 in the designated signature area. If you are filing this form to request a refund or abatement relating to a joint return, both you and your spouse from the related joint return must sign the form. The direct debit from your checking account will not be approved
unless you and your spouse, if filing a joint return, sign Form 9465. Your signature affirms that the information provided is accurate and complete to the best of your knowledge.
Step 13: Attach Supporting Documentation
Compile and attach all required supporting documentation to your Form 9465 submission. If you are required to complete Form 433-F due to your debt amount or payment proposal, ensure it is fully completed and attached to your submission. If you are requesting a payroll deduction, attach the completed and signed Form 2159, with the employer portion completed. If an authorized representative is submitting the form on your behalf, attach Form 2848, Power of
Attorney and Declaration of Representative, to demonstrate proper authorization.
Step 14: Determine Correct Mailing Address
Identify the appropriate IRS address for your situation based on the Where To File instructions.
If you are filing Form 9465 with your tax return, attach it to the front of your return and send it to the address shown in your tax return booklet. If you have already filed your return or are filing this form in response to a notice, file Form 9465 by itself with the Internal Revenue Service
Center using the address specified in the instructions that apply to your state of residence and your specific tax situation. Different addresses apply based on whether you are filing Form 1040 or 1040-SR with Schedules C, E, or F, or if you live outside the 50 states.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 15: Submit Form and Retain Copies
Mail the completed Form 9465 along with all supporting documentation to the appropriate IRS address. Keep complete copies of the form and all attachments for your records. Retain proof of mailing, such as a certified mail receipt or certificate of mailing. The IRS will typically notify you within 30 days of receiving your request whether it has been approved or denied.
However, if this request is for tax due on a return you filed after March 31, it may take longer than 30 days to receive a reply. If the IRS approves your request, it will send you a notice detailing the terms of your agreement and requesting the applicable user fee.
Essential Rules and Considerations
Signature Requirements
Signatures are mandatory from the taxpayer or a legally authorized representative to validly request a valid installment agreement. If the request relates to a joint return, both spouses from the joint return must sign Form 9465. The signature requirement ensures proper authorization and accountability for the payment agreement terms. Unsigned forms will be rejected and returned for proper execution.
Direct Debit Banking Information Accuracy
Provide correct banking information for direct debit requests to prevent delays, errors, or rejection of your installment agreement. Verify the routing number and account number with your financial institution before submitting the form. Incorrect banking information can result in failed payments, potential default on your agreement, and additional collection actions.
Double-check that you have entered the numbers accurately and that direct debit is permitted on your account.
Supporting Documentation Requirements
Attach necessary supporting documents, especially if requesting a formal installment plan due to large debts or special circumstances. Form 433-F is required when the amount owed exceeds $50,000 or when your proposed payment is less than the calculated minimum for amounts between $25,000 and $50,000, and you do not elect direct debit or payroll deduction.
Providing complete and accurate financial information helps the IRS properly evaluate your ability to pay and approve an appropriate payment plan.
Authorized Representative Requirements
Authorized representatives must include a Power of Attorney, such as Form 2848, to act on your behalf. The Power of Attorney must be properly completed and signed by the taxpayer, authorizing the representative to act specifically for purposes of the installment agreement request. Without proper authorization documentation, the IRS cannot discuss the taxpayer’s account with the representative or accept the representative’s submission of Form 9465.
Financial Statement Verification
The IRS may require verification of your financial situation through supplementary forms like
Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-F, Collection Information Statement. These forms provide detailed information about your income, expenses, assets, and liabilities, allowing the IRS to assess your ability to pay. Be prepared to provide supporting documentation such as pay stubs, bank statements, and bills to verify the financial information reported.
User Fees and Low-Income Provisions
The IRS charges user fees to set up installment agreements, with amounts varying based on the application method and payment type. As of July 1, 2024, the fees are as follows: $22 for direct debit through the online payment application, $107 for direct debit without using the online application, $69 for other payment methods through the online application, and $178 for other payment methods without using the online application. Low-income taxpayers who establish direct debit installment agreements are eligible for a waiver of user fees. Low-income taxpayers
unable to use direct debit may receive reimbursement of the reduced $43 user fee upon completion of the installment agreement.
Interest and Penalties Continue to Accrue
You will be charged interest and a late payment penalty on any tax not paid by its due date, even if your request to pay in installments is granted. Interest and applicable penalties will continue to accrue until the balance is paid in full. To limit interest and penalty charges, file your return on time and pay as much of the tax as possible with your return or notice. All payments received under the installment agreement will be applied to your account in the best interests of the United States.
Consequences of Non-Compliance
If you do not make your payments on time or do not timely pay a balance due on a return you file later, you will be in default on your agreement, and the IRS may terminate the agreement.
Before terminating the agreement, you may be entitled to file an appeal under the Collection
Appeals Program.
The IRS may take enforcement actions such as filing a Notice of Federal Tax Lien or issuing an
IRS levy to collect the entire amount you owe. An installment agreement may be terminated if you provide materially incomplete or inaccurate information in response to an IRS request for a financial update or if you provide such information to obtain the installment agreement.
Submission Methods
Form 9465 must be submitted by mail to the appropriate IRS address based on your specific circumstances. Determine the correct mailing address using the Where To File tables in the instructions, which vary based on your state of residence and whether you are filing certain schedules with your tax return.
Alternatively, if you owe $50,000 or less, you can apply online through the online payment agreement application at IRS.gov/OPA. Form 9465 can also be included electronically with an e-filed tax return. There is no fax submission option available for Form 9465.
Refund Application and Future Tax Compliance
Any refund you receive will be applied against the amount you owe, even if you have an installment agreement. If your refund is applied to your balance, you are still required to make your regular monthly installment payment.
You also agree to meet all your future tax obligations, which means you must have enough withholding or estimated tax payments so that your tax obligation for future years is paid in full
when you timely file your return. Failure to remain current on future tax obligations while maintaining an installment agreement can result in default and termination of the agreement.
This comprehensive checklist ensures accurate completion and submission of Form 9465 while maintaining compliance with IRS requirements for establishing installment agreements to resolve tax debt through manageable monthly payments.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
