IRS Form 9465 walkthrough (Installment Agreement Request)

Use Form 9465 to request a monthly installment agreement (payment plan) if you can’t pay the full amount you owe shown on your tax return (or on a notice we sent you). Most installment agreements meet our streamlined installment agreement criteria. The maximum term for a streamlined agreement is 72 months. In certain circumstances, you can have longer to pay or you can establish an agreement for an amount that is less than the amount of tax you owe.

However, before requesting a payment plan, you should consider other alternatives, such as getting a bank loan or using available credit, which may be less costly. If you have any questions about this request, call 800-829-1040.

Use Form 9465 if you’re an individual:

-Who owes income tax on Form 1040 or 1040-SR,
-Who is or may be responsible for a Trust Fund Recovery Penalty,
-Who owes employment taxes (for example, as reported on Forms 941, 943, or 940) related to a sole proprietor business that is no longer in operation, or
-Who owes an individual shared responsibility payment under the Affordable Care Act (this payment won’t be assessed for months beginning after December 31, 2018). See section 5000A.

Don’t use Form 9465 if:

-You can pay the full amount you owe within 120 days (if you plan to pay the taxes, interest and penalties due in full within 120 days, you can save the cost of the set up fee—see Can you pay in full within 120 days, later);
-You want to request a payment plan online, including an installment agreement (see Applying online for an installment agreement and other payment plans, later); or
-Your business is still operating and owes employment or unemployment taxes. Instead, call the telephone number on your most recent notice to request an installment agreement.

Guaranteed installment agreement.

You’re eligible for a guaranteed installment agreement if the tax you owe isn’t more than $10,000 and:
-During the past 5 tax years, you (and your spouse if filing a joint return) have timely filed all income tax returns and paid any income tax due, and haven’t entered into an installment agreement for the payment of income tax;
-You agree to pay the full amount you owe within 3 years and to comply with the tax laws while the agreement is in effect; and
-You’re financially unable to pay the liability in full when due.

Can you pay in full within 120 days?
If you can pay the full amount you owe within 120 days, you can avoid paying the fee to set up an installment agreement. You can apply for a short-term payment plan if you can pay in full within 120 days by using the OPA application at IRS.gov/OPA or calling the IRS at 800-829-1040.

Applying online for an installment agreement and other payment plans. If your balance due isn’t more than $50,000, you can apply online for a payment plan instead of filing Form 9465. To do that, go to IRS.gov/OPA. If you establish your installment agreement using the OPA application, the user fee that you pay will be lower than it would be otherwise.

Bankruptcy or offer-in-compromise.
If you’re in bankruptcy or we have accepted your offer-in-compromise, don’t file this form. Instead, call 800-829-1040 to get the number of your local IRS Insolvency function for bankruptcy or Technical Support function for offer-in-compromise.