IRS Form 9465 Installment Agreement Request Instructions
If you can’t use the IRS’s online payment agreement, or you don’t want to call the IRS, you can use Form 9465 (Installment Agreement Form) to set up a payment plan. This form is primarily for individuals. Businesses can only use this form if they are out of business.
Who Needs to File Form 9465?
When you owe more than $50,000 in tax debt, you must use this form—you can’t apply for a payment plan online with that level of debt. If you are currently making payments on an installment plan, you can use this form to apply to roll your new tax liability into your current payment plan.
Regardless of how much you owe, you don’t need to use this form if you can pay off your total tax debt within the next 120 days.
Part One of Form 9465
At the very top of the form, you need to note which tax return you filed (for instance, 1040) and the year in question. You also need to provide basic details about yourself such as your Social Security Number, address, business name (if applicable), the name of your financial institution, and your employer’s name.
Then, you need to fill out how much you owe, how much you are paying right now, and how much you can afford to pay per month. The number of months you have to pay is influenced by how much you owe in some cases and in other cases by how much time is left on the statute of collections. The form also requires you to choose a payment date between the 1st and 28th of every month.
Generally, if you owe more than $50,000, you may need to fill out Form 433-F (Collection Information Statement). Under an IRS Pilot program, the IRS is letting some installment agreements up to $100,000 without it if the taxpayer pays by direct debit or payroll deduction. Otherwise, a 433-F will be required. IRS representatives may also request one based on your circumstances. This form requires detailed information about your personal finances so the IRS can decide if you qualify for another arrangement.
At the bottom of part one of Form 9465, you can set up automatic payments. To do that, you need your bank routing and account numbers. Alternatively, you can agree to let the IRS take the payments directly from your paycheck. For this option, you have to complete Form 2159 (Payroll Deduction Agreement).
If you owe more than $50,000 to the IRS and you don’t want to make automatic payments, you have to file form 433-F. In these cases, the information on that form gives the IRS reassurance that you can afford to make your repayments.
Part Two of Form 9465
You only need to complete this section if you owe between $25,000 and $50,000 and you have defaulted on a previous payment plan.
This part of the form requests your country of residence, marital status, number of dependants, and the number of people in the house over the age of 65. It also asks about your take-home pay and how often you get paid. If you are married, you need to provide those details about your spouse, and you need to say whether or not you share expenses with your spouse.
You also need to note how many vehicles you have and your monthly payments for vehicle loans. Then, you need to share if you have health insurance and the monthly premium amount. Finally, you need to list court-ordered payments and monthly child care costs.
Fees for Form 9465
The fee to set up an installment agreement with this form is $225 (as of 2019). If you agree to make your payments through direct debit, the fee is only $107.
If your income is below a certain threshold, you can pay the reduced fee of $43. Usually, the IRS lets you know if you qualify for the reduced fee, but if you don’t hear anything, you can request the reduced fee using Form 13844 (Application For Reduced User Fee For Installment Agreements).
Note that if you apply online the fee is only $149—that is more affordable than using the form. If you need to make changes to an existing payment arrangement, the fee is $89.
Response Time for Form 9465
The IRS says that the response time varies, but in most cases, you can expect a response within 30 days. If you are requesting an installment agreement in April for a tax return filed after March 31, expect a delayed response time.
If the date of your proposed first payment rolls around and you haven’t gotten a response from the IRS, send in the payment anyway.
Disclaimer: The content on this website is for educational purposes only and does not serve as legal or tax advice. For specific advice regarding your tax situation, contact a licensed tax professional or tax attorney.