IRS Form 9465 Installment Agreement Request Instructions
If you cannot use the IRS’s online payment agreement or you don’t want to call the IRS, you can use Form 9465 (Installment Agreement Request) to request a payment plan. This guide explains who should file this form, how to file form 9465, and what to expect when you have a payment plan with the IRS.
Who Can File Form 9465?
Form 9465 is primarily for individuals. Businesses can only use this form if they are out of business. The following taxpayers can use form 9465 to request a payment plan:
- Individuals who owe income tax from Form 1040.
- Individuals who are responsible for a Trust Fund Recovery Penalty or employment taxes related to a sole proprietorship that is no longer operating.
- Individuals currently on a payment plan who want to roll their new tax liability into their current payment plan.
When you owe more than $50,000 in taxes, you must use this form — you can’t apply for a payment plan online with that level of taxes owed. However, you don't necessarily need to apply through the mail. Instead, you can fill out this form, and then call the IRS and give them the info over the phone.
Regardless of how much you owe, you don’t need to use this form if you can pay off your total tax amount within the next 180 days. If your business is still operating and you need a payment plan for employment or unemployment taxes, you can't use this form. You need to call the number on your most recent notice.
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. Generally, you must be able to pay off the tax liability within 72 months unless the statute of collections expires before then. The form also requires you to choose a payment date between the 1st and 28th of every month.
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).
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 dependents, 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.
Filing Form 433-F With Form 9465
In some cases, the IRS may want more details about your financial situation, and if so, you will need to file Form 433-F (Collection Information Statement) with Form 9465. This form requires detailed information about your personal finances so the IRS can decide if you qualify for another arrangement.
Generally, you need to file this form if any of the following apply:
- You owe more than $50,000 -- note that as of 2023, you don't need to submit Form 433 if you owe over $50,000 and your account hasn't been assigned to a revenue officer.
- You owe between $25,000 and $50,000 and don't want to set up direct debit.
- You can't afford to pay off the tax liability in 72 months.
To reduce the paperwork burden for both taxpayers and the IRS, the IRS now lets taxpayers with liabilities up to $250,000 request a payment plan without filing Form 433-F. However, this rule only applies if your account hasn't been assigned to a revenue officer. When you owe this level of debt, the IRS will place a federal tax lien on your assets, unless the tax owed is from 2019.
IRS representatives may also request a 433-F at their discretion, based on your circumstances.
Fees for Form 9465
The fee to set up an installment agreement with this form is $225 (as of 2022). If you agree to make your payments through direct debit, the fee is only $107.
If your income is below 250% of the federal poverty line, you can pay a reduced fee of $43. If you set up direct debit, the IRS may waive the fee completely. 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 (or just $31 if you set up direct debit) — that is more affordable than using the form. If you need to make changes to an existing payment arrangement, the fee is $10.
How to File Form 9465 & Address to Send To
To file Form 9465 on paper, click on the pdf link on the IRS's website, print it out, and fill out the information by hand. Then, mail the form to the IRS. You can submit Form 9465 on its own, or if you are filing your tax return and can't afford to pay the balance, you can submit Form 9465 with your return.
If you are mailing in your IRS Form 9465, it depends on where you live. You can reference the IRS addresses for form 9465.
Some tax prep software also allows you to file Form 9465. Look for the forms menu, select this form, and fill it out. The software should tell you if you can e-file or if you need to print and mail the form.
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.
If you meet the following criteria, the IRS will automatically approve your payment plan:
Unable to pay in full when due.
- Owe less than $10,000.
- Not used an installment plan in the last five years.
- Able to pay the balance within three years.
- Up to date on tax return filing obligations.
What to Expect When You're on a 9465 Installment Plan
If the IRS accepts your request for a payment plan, interest and penalties will continue to accrue on your account. When you have a payment plan, the penalty usually drops to just 0.25% of the balance every month — depending on your situation, the penalty can be between 0.5% and 5% if you're not on a payment plan. Interest adjusts every month, and it is the prime rate plus 3%.
The IRS may file a tax lien against your assets if you owe more than $10,000. Generally, the agency may also keep your federal and state tax refunds and apply them to your balance.
If you do not set up automatic payments, the IRS will send you monthly notices showing the remaining amount due, the due date, and the amount of your next payment. Taxpayers who set up direct debit will get an annual notice with this same information.
Alternatives to Filing Form 9465
If you don't want to file Form 9465, you may qualify for an alternative. Here are some of the options:
- Calling the IRS — If you can pay the balance within 180 days, call the IRS at 1-800-829-1040 to request a short-term payment plan.
- Applying online — If you owe less than $50,000, you can apply for a payment plan online.
- Requesting an offer in compromise (OIC) — An OIC allows you to settle your tax liability for less than you owe. Use Form 656 to apply.
- Filing bankruptcy — You can only discharge some tax liabilities through bankruptcy, but when you file, the courts issue a stay that temporarily prevents the IRS from pursuing collection actions on your account.
- Being labeled as currently not collectible — If you cannot afford your tax bill and basic living expenses, you may qualify for hardship status.
What Is GA-9465 (Installment Agreement Request)?
The Georgia Department of Revenue also uses number 9465 on its payment plan request form. If you owe Georgia state taxes, you can use Form GA-9456 to request an installment agreement. Make sure that you don't accidentally use this form when requesting an installment agreement for federal taxes.
If you are looking for a tax professional who has experience setting up IRS payment plans, visit this link or start a search below. Our network will allow you to connect with the highest-rated tax professionals who can help with your unique tax problem.
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.