Not everyone can afford to pay their tax bill in full when it’s due. Thankfully, the IRS offers a solution through Form 9465 – Installment Agreement Request. This form allows taxpayers to apply for a monthly payment plan to pay off their tax debt over time. While setting up an installment agreement won’t eliminate your liability, it helps avoid more severe consequences such as wage garnishments or asset levies. In this guide, we will break down the purpose, eligibility, how to complete, and best practices for using IRS Form 9465.
What Is IRS Form 9465?
IRS Form 9465 is the official form used to request an installment agreement for paying tax debt in monthly payments. When approved, this agreement allows taxpayers to avoid enforced collection actions while staying compliant with a scheduled payment plan.
This form is applicable to individuals who owe income taxes, as well as certain self-employed individuals and sole proprietors. For large tax debts or more complex arrangements, additional documentation may be required.
When Should You Use Form 9465?
You should file Form 9465 if:
- You owe $50,000 or less in combined tax, penalties, and interest, and cannot pay in full.
- You want to propose a payment plan to resolve your debt gradually.
- You are filing your tax return and cannot pay the amount due at once.
If you owe more than $50,000, you can still request an installment agreement, but you’ll need to provide a Collection Information Statement (Form 433-A or 433-F) for IRS review.
Benefits of Filing Form 9465
- Avoid Collections: An approved agreement prevents IRS enforcement actions like levies and garnishments as long as you remain current.
- Predictable Payments: You choose a monthly amount and date that works for your financial situation.
- Maintain Compliance: Staying on an active payment plan shows good faith and helps avoid escalation.
- Online Convenience: For debts under $50,000, you may not need to use the paper form at all—use the IRS Online Payment Agreement tool instead.
Where to Get IRS Form 9465
Form 9465 can be downloaded from the IRS website at www.irs.gov/forms-pubs/about-form-9465. You can also submit an online request at the IRS.gov “Online Payment Agreement” portal if eligible.
How to Complete IRS Form 9465
Here is a line-by-line breakdown of how to complete Form 9465:
Line 1–2: Personal Information
Enter your name(s), Social Security Number(s), current address, and daytime phone number. If you filed jointly, include your spouse’s information as well.
Line 3: Name and Address Different from Tax Return?
If your current name or address is different from what appears on your most recent tax return, check the box and attach a statement or Form 8822 for change of address.
Line 4–5: Business Information (if applicable)
If you’re self-employed or a sole proprietor, you may need to include business name, EIN, and tax form filed (e.g., Schedule C or Form 1040).
Line 6: Total Tax Due
Enter the amount of tax you owe, including penalties and interest. This amount should be consistent with your tax return or IRS notice.
Line 7: Amount You Can Pay Monthly
Indicate how much you propose to pay each month. Be realistic—choosing a payment amount too low may result in rejection, while too high may strain your budget.
Line 8: Monthly Payment Date
Choose the day of the month (1st–28th) when you want your payment to be due each month. Picking a consistent date near your payday can be helpful.
Line 9: Direct Debit Authorization
Check this box if you want your payments automatically debited from your bank account. You’ll need to fill out the banking section on the back. Direct debit is often required for debts over $25,000.
Line 10: Additional Balance Owed
If you have any other unpaid tax balances not included in this form, list them here so the IRS can consider them in one comprehensive agreement.
Signature Section
Both spouses must sign if you filed jointly. By signing, you confirm that the information is correct and that you are requesting the IRS to approve your payment plan.
Where and How to File Form 9465
If submitting by paper, you can:
- Attach Form 9465 to your paper tax return and mail both together to the IRS.
- If filing separately from your return, mail it to the appropriate IRS address listed in the instructions for your area of residence.
Alternatively, use the IRS Online Payment Agreement application if your situation qualifies. This method is faster and often provides instant approval.
Fees for Installment Agreements
As of 2025, the IRS charges the following setup fees for installment agreements:
- Direct Debit (online): $31
- Direct Debit (paper/mail): $107
- Non-direct debit (online): $130
- Low-income taxpayers (with approval): May qualify for reduced or waived fees
Fees may change, so check the IRS website for current rates.
What Happens After You File Form 9465?
Once the IRS receives your request, they typically respond within 30 days. If approved, you’ll receive a letter confirming the terms of the agreement, payment due date, and method of payment. If denied, the IRS will outline why and suggest next steps.
While waiting for a response, make at least a partial payment if you can to reduce your outstanding balance and interest accrual.
Consequences of Defaulting on an Installment Agreement
If you fail to make payments on time or accrue new unpaid tax debt, the IRS can terminate your agreement. This can result in enforced collection actions, including liens, levies, and garnishments. You’ll also incur additional penalties and interest.
Tips for a Successful Installment Agreement
- Set a monthly amount you can consistently afford.
- Opt for direct debit to reduce fees and prevent missed payments.
- File all future tax returns on time to remain in good standing.
- Respond promptly to any IRS correspondence related to your agreement.
- Consider working with a tax professional if your debt is large or complicated.
Alternatives to Form 9465
If an installment agreement isn’t right for your situation, consider these alternatives:
- Offer in Compromise: Settle your tax debt for less than the full amount owed if you qualify.
- Currently Not Collectible Status: Temporarily halt collections due to financial hardship.
- Short-Term Extension: Pay in full within 180 days without a formal agreement.
Conclusion
IRS Form 9465 provides a valuable option for taxpayers who cannot immediately pay their full tax liability. By establishing a structured monthly payment plan, you can avoid collections, reduce stress, and maintain your tax compliance. Whether you’re filing Form 9465 with your return or as a separate request, be sure to provide accurate information and a realistic payment proposal. It’s often wise to consult a tax professional to ensure the plan you propose meets both your needs and IRS criteria.
For up-to-date information, downloadable forms, and access to the Online Payment Agreement tool, visit the official IRS website at www.irs.gov.
