Your Step-by-Step Guide to Completing IRS Form 9465: Installment Agreement Request

Step

Action

Details & Tips

1. Determine If You Should Use Form 9465

Decide if this is the best option for your situation.

Use Form 9465 if: You owe tax shown on your tax return or on an IRS notice and cannot pay the full amount immediately. You need more than 120 days to pay. You want to formalize a payment plan in writing. Consider alternatives: If you owe $50,000 or less and can pay within 180 days, you may qualify for a short-term payment plan with no setup fee—apply online at IRS.gov/OPA (Online Payment Agreement). If you owe $50,000 or less, you can request an installment agreement online for a reduced setup fee instead of using Form 9465. If you can pay in full within 120 days, contact the IRS directly—no form or fee required. Important: Form 9465 is for individual income tax debt. For business employment taxes (Forms 941, 940, 943), your business must no longer be operating to use this form. If your business is still operating and owes employment taxes, you cannot use Form 9465. Tip: Applying online is faster, cheaper, and more convenient than mailing Form 9465. Setup fees are significantly lower for online applications with direct debit ($31 versus $225 for paper applications without direct debit).

2. Understand User Fees and Costs

Know what you’ll pay to set up the agreement.

The IRS charges a user fee to set up an installment agreement. The amount varies based on how you apply and how you make payments: Online Payment Agreement with Direct Debit: $31 Online Payment Agreement without Direct Debit: $130 Paper Form 9465 with Direct Debit: $107 Paper Form 9465 without Direct Debit: $225 Payroll Deduction Agreement (Form 2159): $178 Low-income taxpayer reduced fee: $43 (for taxpayers whose income is at or below 250% of the federal poverty guidelines) Low-income taxpayer fee waiver: If you qualify as low-income and agree to make payments by direct debit, your setup fee may be waived or reimbursed upon completion of the agreement. Modification or reinstatement fee: $89 to modify or reinstate a defaulted agreement. Other costs: Interest and late payment penalties continue to accrue on unpaid balances until paid in full, even with an approved installment agreement. Tip: To minimize costs, apply online and choose direct debit payments. This combination gives you the lowest setup fee and ensures on-time payments.

3. Determine Your Payment Amount

Calculate what you can realistically pay each month.

Guaranteed Installment Agreement: If you owe $10,000 or less (not including penalties and interest), you’re eligible for a guaranteed agreement if: you’ve filed all required returns and paid all taxes for the past five years, you haven’t had an installment agreement during that time, and you agree to pay the full amount within three years (36 months). Divide your total balance by 36 to get your minimum monthly payment. Streamlined Installment Agreement: If you owe more than $10,000 but not more than $50,000, you may qualify for a streamlined agreement. Divide your total balance by 72 to estimate your minimum monthly payment (though the IRS may accept longer terms in some cases). Financial statement required: If you owe more than $50,000, you must complete and attach Form 433-F (Collection Information Statement) with your Form 9465. The IRS will review your financial situation to determine an appropriate payment amount. Make payments as large as possible: The larger your monthly payments, the less you’ll pay in interest and penalties over time. However, propose an amount you can realistically afford—defaulting on an agreement has consequences. Tip: Use Line 10 on Form 9465 to calculate your estimated minimum payment by dividing Line 9 (amount owed) by 72. If you can’t afford this amount, you’ll need to complete Part II of the form and may need to attach Form 433-F.

4. Complete Lines 1-4: Your Information

Enter your personal or business identifying information.

Line 1a – Name, Address, and Social Security Number: Enter your name (and spouse’s name if filing jointly) in the same order as on your tax return. Provide your current mailing address. Include your Social Security Number (or Individual Taxpayer Identification Number). For joint returns, list both Social Security Numbers in the same order as your tax return. If you have a foreign address, enter the city name on the appropriate line, then complete the spaces below with country, postal code, and province/county/state (do not abbreviate the country name). Line 1b – Address Change: Check this box if the address on Line 1a is different from the address on your last filed tax return. Line 2 – Business Information (if applicable): Enter your Employer Identification Number and business name only if you’re requesting an agreement for employment taxes related to a sole proprietorship that is no longer operating. Line 3 – Home Phone and Best Time to Call: Provide your home phone number and indicate the best time for the IRS to reach you. Line 4 – Work Phone and Best Time to Call: Provide your work phone number (if applicable) and indicate the best time for the IRS to call. Tip: Make sure your contact information is current and accurate. The IRS will use this to reach you about your agreement.

5. Complete Lines 5-10: Amount Owed and Payment Information

Calculate your total debt and proposed payment.

Line 5 – Tax Year(s) or Period(s): Enter all tax years or periods for which you’re requesting the installment agreement (for example, “2022, 2023” or “January 1, 2023, to March 31, 2023”). Be specific—do not use vague terms. If requesting for multiple years, list them all. Line 6 – Total Amount You Owe: Enter the total amount you owe as shown on your tax return(s) or IRS notice(s). Include all tax, penalties, and interest. Line 7 – Additional Balances: If you have any additional tax balances due that aren’t reported on Line 6, enter them here—even if those amounts are already included in an existing installment agreement. Line 8 – Total Amount Owed: Add Lines 6 and 7. This is your complete balance due. Line 9 – Payment with Request: Enter the amount of any payment you’re making with this request. Making a payment reduces your balance and shows good faith. Paying as much as possible upfront reduces interest and penalties. If filing Form 9465 with your tax return, include the payment with your return. If filing after you’ve already submitted your return, you can still make a payment. Line 10 – Amount to Be Paid in Installments: Subtract Line 9 from Line 8. This is the amount you need to pay through installment payments. Tip: Consider making the largest possible initial payment on Line 9 to reduce the principal balance and minimize interest charges over time.

6. Complete Lines 11-12: Proposed Monthly Payment

Propose your monthly payment amount and schedule.

Line 11a – Monthly Payment Amount: Enter the amount you can pay each month. Make your payments as large as possible to limit interest and penalty charges, which will continue until the balance is paid in full. If you have an existing installment agreement, this amount should represent your total proposed monthly payment for all your liabilities. Line 11b – Calculation Check: Divide the amount on Line 10 by 72 and enter the result. This is an estimate of the minimum payment the IRS might accept. If Line 11a is less than Line 11b: You’ll need to complete Part II (financial information) on page 2 of Form 9465. If you owe more than $50,000, you must complete and attach Form 433-F (Collection Information Statement). Line 12 – Payment Due Date: Enter the day of each month you want your payment to be due. You can choose any day from the 1st through the 28th. Choose a date that works with your budget—for example, if rent is due on the 1st, you might choose the 15th for your IRS payment. The IRS will notify you of when your first payment is due after they approve your request. Tip: Be realistic with your monthly payment amount. Defaulting on an installment agreement within the first 12 months can make it harder to get approval for future agreements.

7. Complete Lines 13-14: Payment Method

Choose how you’ll make your monthly payments.

Lines 13a and 13b – Direct Debit from Checking Account (Recommended): This is the most convenient and cost-effective payment method. It ensures on-time payments and qualifies you for the lowest setup fee. Line 13a – Routing Number: Enter your bank’s nine-digit routing number. The first two digits must be 01-12 or 21-32. Find this on your check (usually the first set of numbers at the bottom). Line 13b – Account Number: Enter your checking account number (do not include the check number). Line 13c – Low-Income Taxpayer Certification: Check this box if you’re a low-income taxpayer and unable to make electronic payments through direct debit. You may qualify for fee reimbursement upon completion of your agreement. Authorization: Sign the authorization statement at the bottom of this section to authorize the U.S. Treasury to initiate monthly automatic withdrawals from your account. Both spouses must sign for joint returns. Direct debit will not be approved without your signature. Line 14 – Payroll Deduction: Check this box if you want payments deducted directly from your paycheck instead of your bank account. You must attach a completed, signed Form 2159 (Payroll Deduction Agreement). The setup fee for payroll deduction is $178. If you don’t choose direct debit or payroll deduction: You’ll make manual payments by check, money order, credit/debit card, or other approved methods. However, your setup fee will be higher, and you’ll need to remember to make payments on time each month. Tip: Direct debit is strongly recommended. It guarantees on-time payments, prevents default, gives you the lowest fee, and eliminates the hassle of remembering to make manual payments.

8. Complete Part II: Additional Financial Information (if required)

Provide detailed financial information if needed.

When Part II is required: If you 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 the amount on Line 11a is less than Line 11b. If you owe more than $50,000, skip Part II and complete Form 433-F instead. Questions 15-30 cover: Number of dependents, filing status, shared household expenses with spouse, monthly income (yours and your spouse’s), pay frequency, vehicle ownership and payments, health insurance premiums, court-ordered payments, other monthly expenses. Purpose: The IRS uses this information to evaluate your ability to pay and determine if your proposed payment amount is reasonable based on your financial situation. Complete all applicable questions honestly: Providing false information can result in rejection of your agreement and potential penalties. Leave questions blank if they don’t apply to you. Tip: If you’re required to complete Part II, consider working with a tax professional who can help you present your financial information in the best possible light while remaining truthful and compliant.

9. Sign and Date the Form

Provide required signatures.

Your Signature: Sign and date Form 9465 in the designated signature area. By signing, you authorize the IRS to contact third parties and disclose your tax information to process this request and administer the agreement. You also agree to the terms of the agreement, including: paying the full amount owed with interest and penalties, filing all required tax returns and paying all taxes on time in the future, and allowing the IRS to keep any refunds and apply them to your balance until the installment agreement is paid in full. Spouse’s Signature (if filing jointly): If you filed a joint return, both spouses must sign Form 9465. Date: Include the date you’re signing the form. Direct Debit Authorization Signature: If you completed Lines 13a and 13b for direct debit payments, both you and your spouse (if filing jointly) must sign the authorization statement at the bottom of that section. Tip: Keep a copy of your signed Form 9465 for your records before mailing it to the IRS.

10. Attach Required Documentation

Include all necessary supporting documents.

Form 433-F (if required): If you owe more than $50,000, you must complete and attach Form 433-F (Collection Information Statement). You can obtain this form from IRS.gov. Form 2159 (if applicable): If you checked the box on Line 14 to make payments by payroll deduction, attach a completed, signed Form 2159 (Payroll Deduction Agreement). Payment (if included): If you’re making a payment with your request (Line 9), include your check or money order. Do not send cash. Write your Social Security Number, tax year, and form number on your payment. Copy of Tax Return (if filing with return): If you’re submitting Form 9465 with your tax return, attach Form 9465 to the front of your return. Tip: Double-check that all required forms are completed, signed, and attached before mailing. Missing documentation will delay processing.

11. Mail Form 9465 to the Correct Address

Send your form to the appropriate IRS location.

If filing with your tax return: Attach Form 9465 to the front of your return and mail it to the address shown in your tax return booklet. If you’ve already filed your return or are filing in response to a notice: File Form 9465 by itself using the address in the Where to File table in the Form 9465 instructions. The correct address depends on: your state of residence, whether you file Schedules C, E, or F, and whether you’re an overseas taxpayer. Common addresses include: Internal Revenue Service (followed by the specific address for your state/situation as listed in the instructions). Use certified mail or tracking: Consider sending your form via certified mail with return receipt requested, or use a trackable mailing method to confirm the IRS receives your request. Timing: Mail Form 9465 as soon as possible to minimize additional penalties and interest. Tip: Refer to the most current Where to File chart in the Form 9465 instructions, as IRS processing addresses can change. Sending to the wrong address causes significant delays.

12. Make Your First Payment While Awaiting Approval

Start paying even before you receive approval.

Don’t wait for approval: If the IRS hasn’t replied by the date you chose for your first payment (Line 12), send your first payment to the Internal Revenue Service Center at the address shown in the Where to File instructions. Include your Social Security Number, tax year, and form number on your payment. Make payments on time: Continue making monthly payments by your chosen due date even while your request is being processed. This demonstrates good faith and reduces your balance. Where to send payments: Mail payments to the IRS address for your location (shown in the Where to File chart) or make payments online at IRS.gov/Payments. Payment methods: Check, money order, credit/debit card (processing fees apply), electronic funds withdrawal, or direct debit (once set up). Tip: Making timely payments while your request is pending shows the IRS you’re serious about paying your debt and can help ensure approval.

13. Respond to IRS Decision

Review and comply with the IRS response.

Approval: If approved, you’ll receive a notice that includes: your monthly payment amount, your payment due date, where to send payments (if not using direct debit), terms and conditions of your agreement, and your user fee amount. Keep making payments: Follow the payment schedule exactly as outlined in your approval notice. Missing payments can cause your agreement to default. Your refunds will be applied to your debt: Any federal tax refunds you’re owed will automatically be applied to your outstanding balance until the installment agreement is paid in full. Continue filing and paying future taxes: You must file all future tax returns on time and pay any new taxes owed in full. Failing to stay current on future taxes will cause your installment agreement to default. If denied: The IRS will explain why your request was denied and may suggest alternatives, such as: modifying your proposed payment amount, providing additional financial information (Form 433-F), or considering other payment options. Appeal rights: If your request is denied or if the IRS files a Notice of Federal Tax Lien, you have appeal rights through the Collection Appeals Program or Collection Due Process hearing. Tip: Read your approval notice carefully and note all deadlines and requirements. Set up reminders for your monthly payment due dates.

14. Maintain Your Agreement

Stay compliant to avoid default.

Make all payments on time: Missing even one payment can cause your agreement to default. Use direct debit to ensure payments are always on time. File all future tax returns on time: You must file every required return by its deadline, even if you can’t pay the full amount. Pay all future taxes in full: Pay any new tax liabilities in full by their due dates. If you can’t, contact the IRS immediately to modify your agreement. Keep adequate withholding or estimated tax payments: Adjust your withholding (Form W-4) or make estimated tax payments (Form 1040-ES) to ensure you don’t owe additional taxes in future years. IRS will keep your refunds: Any refunds will be applied to your installment agreement balance until it’s paid off. Review notices promptly: The IRS will send you regular statements showing your balance and payment history. Review these carefully. Default consequences: If you default, the IRS can: terminate your agreement, immediately pursue collection actions (levies, garnishments, liens), and require full payment of your remaining balance. Tip: Set up automatic reminders or use direct debit to ensure you never miss a payment. If your financial situation changes and you can’t make a payment, contact the IRS immediately to discuss modification options.