IRS Form 9465 Explained

IRS Form 9465, Installment Agreement Request, is a tax form that individuals can file to request a monthly payment plan when they cannot pay their full tax liability by the due date.

When to Use Form 9465

Form 9465 should be used when:

• You cannot pay your full tax liability by the due date
• You need more time to pay your taxes
• You want to avoid more serious collection actions
• You can afford monthly payments but not a lump sum
• You owe $50,000 or less in combined tax, penalties, and interest

Types of Installment Agreements

The IRS offers several types of payment plans:

• Short-term payment plan: Pay within 120 days (no setup fee)
• Long-term payment plan: Monthly payments over more than 120 days
• Direct debit installment agreement: Automatic bank withdrawals
• Payroll deduction agreement: Payments through employer

Eligibility Requirements

To be eligible for an installment agreement:

• You must have filed all required tax returns
• You owe $50,000 or less in combined tax, penalties, and interest
• You must be able to pay the full amount within 72 months
• You haven't had an installment agreement in the past 5 years
• You must stay current on all future tax obligations

Fees and Costs

Installment agreement fees vary by type:

• Setup fee: $31-$225 depending on agreement type
• Low-income taxpayers may qualify for reduced fees
• Interest and penalties continue to accrue during the payment period
• Direct debit agreements have lower setup fees

Benefits of Installment Agreements

• Stops most IRS collection actions
• Provides time to pay without immediate financial hardship
• Helps avoid wage garnishments and bank levies
• Allows you to maintain good standing with the IRS