If you owe back taxes, you can use Form 9465 (Installment Agreement Request) to apply for an IRS installment plan through the mail. This form also gives you a good idea of the information you need to request a payment plan online. To help you prepare, this guide explains the basics of the IRS’s installment agreement request form.
Using Form 9465 to Apply for a Payment Plan on Back Taxes
Need help navigating this process? The tax attorneys at The W Tax Group have extensive experience helping our clients set up payment plans or making other arrangements with the IRS. To get help with back taxes, contact us today.
Who Should Use Form 9465?
Individual taxpayers and individuals representing businesses no longer in operation can use Form 9465. You can apply for a payment plan online or using this form if you owe $50,000 or less in tax, interest, and penalties. If you owe more than $50,000, you must use this form to request an installment agreement.
Form 9465 Part I: Installment Agreement Request
Part I of Form 9465 requires the basic information the IRS needs to set up a payment agreement. Be prepared to note the following details:
- Name, address, and phone number
- Name of business that is no longer operating
- Total amount due
- Additional amounts due including back taxes in an existing payment agreement
- The amount you are offering to pay monthly
You need to include your routing and account number if you want to make payments through direct debit. You can also use this form to request to have your payments withheld from your paycheck.
Minimum Monthly Payment for IRS Installment Agreement
Form 9465 helps you calculate the minimum payment the IRS will accept on your payment agreement. To find the minimum payment, subtract any payments you are including with the application from your total balance due. Then, divide the result by 72. These calculations show you the monthly payment if you take six years to pay off your back taxes.
For instance, if you owe $15,400 and include a down payment of $1,000, your minimum monthly payment will be $200. Ideally, you should pay a little more than this to ensure your payment also covers interest and penalties.
If you cannot afford to make the minimum payment, the IRS will not necessarily reject your application. However, you will have to provide the agency with additional information.
Form 9465 Part II: Additional Information
The IRS requires some taxpayers to include additional information on this form. If you cannot afford to pay the minimum amount, you have defaulted on an installment agreement in the last 12 months, and you owe over $25,000, you need to include the following details in Part II (Additional Information) of Form 9465:
- Country of residence
- Marital status
- If you share household expenses with your spouse
- Number of dependents on your tax return
- People in your house age 65 and older
- Pay periods
- Net income per pay period
- How often your spouse gets paid
- Your spouse’s take-home pay
- Number of vehicles you own
- Monthly car payments
- Health insurance premiums
- Court-ordered payments
- Child or dependent care expenses
This information allows the IRS to get a better sense of your income and obligations. Some taxpayers may also have to include Form 433-F with their payment plan requests.
Who Needs to File Form 433-F (Collection Information Statement)
The following taxpayers need to file Form 433-F (Collection Information Statement) with Form 9465:
- Taxpayers who cannot make the minimum monthly payment.
- Taxpayers who owe more than $25,000 and who don’t want to set up direct debit.
- Taxpayers who owe more than $50,000.
Form 433-F requires detailed information about your assets, debts, income, and expenses. It gives the IRS a more complete look at your finances so the agency can make an informed decision about your payment plan request.
Payments through Payroll Deduction
If desired, you can request to make your installment agreement payments through a payroll deduction. With this option, your employer withholds the payments directly from your paycheck and sends them to the IRS on your behalf.
To make this election, tick the box on line 14 of Form 9465. This is at the bottom of page one, above your signature. Then, include Form 2159 (Payroll Deduction Agreement) with your application. This form has sections for both you and your employer to fill out.
User Fee with Form 9465
The IRS charges a user fee to taxpayers who are applying for an installment agreement. As of 2022, the user fee is $107 if you set up direct debit and $225 if you want to pay by any other method. If you apply online instead of with Form 9465, the fees are just $31 and $149 respectively.
To have the fee waived, tick the box on line 13c. The IRS waives the user fee for low-income taxpayers who qualify if they set up direct debit. If you qualify for low-income and cannot set up direct debit, the fee is $43, but the IRS may reimburse your user fee at the end of your installment agreement.
Get Help Applying for an IRS Installment Agreement
Dealing with back taxes can be overwhelming and confusing, but the tax attorneys at The W Tax Group can help you. We can apply for a payment plan or help you identify other resolution options for your situation.
Don’t let the IRS start advanced collection actions on your account. Get help now — contact us today.