Owing back taxes to the IRS can be stressful, especially if you’re not in a position to pay the full amount right away. Fortunately, the IRS provides options that can ease the pressure and help you stay in compliance while working through your balance.
One of those options involves submitting Form 9465. While the paperwork may seem intimidating, understanding how it works can help you make an informed decision about how to handle your tax situation.
In this guide, we’ll walk you through the basics of Form 9465, who qualifies, how to apply, where to send it, and what happens after you file.
What Is IRS Form 9465?
IRS Form 9465 allows individuals to request a monthly payment plan if they cannot pay the full amount owed, whether it’s from a tax return or an IRS notice. Many installment agreements qualify for the IRS’s streamlined process, which can simplify and speed up approval.
In some cases, the IRS may grant additional time to pay or approve a plan for less than the full balance owed. However, before requesting a payment plan, it’s worth considering other options such as a bank loan or available credit, which may be less expensive than accumulating IRS penalties and interest.
Who Should File Form 9465?
IRS Form 9465 is for individuals who:
- Have outstanding income taxes on Form 1040 or 1040-SR
- May be liable for a trust fund recovery penalty
- Owe employment taxes (such as those on Forms 941, 943, or 940) related to a business that is no longer active.
- Who owes an individual shared responsibility payment under the Affordable Care Act (only for months before January 1, 2019)
Key Benefits of Filing Form 9465
Here are the key advantages of submitting Form 9465 and how it can help you manage your IRS payment plan:
- Avoid Collection Actions
Once your agreement is approved, the IRS generally suspends other collection actions like levies, garnishments, or asset seizures, giving you time to manage your payments. - Keeps You Compliant
By setting up a formal payment plan, you help ensure that you’re in good standing with the IRS. As long as you continue making your monthly payments and file future returns on time, you avoid further penalties or complications. - Streamlined Approval for Many Taxpayers
If you owe $50,000 or less and can pay the balance within 72 months, your request is often eligible for streamlined approval with minimal documentation required.
Step-by-Step: Form 9465 Instructions
Here’s a quick guide on how to fill out Form 9465:
1. Personal Information
Provide your:
- Full name and Social Security Number (SSN)
- Current address (including foreign address fields if applicable)
- Spouse’s information if filing jointly
- Phone numbers and best times to call
If your address has changed since your last tax return, be sure to check the box in line 1b.
2. Tax Information
- Identify the tax form (e.g., Form 1040) and the tax year(s) or period(s) involved
- Enter the total amount you owe (line 5), along with any other outstanding balances not accounted for (line 6)
- Add both amounts to get the total (line 7)
- Include any payment you plan to make along with your request (line 8)
- Subtract that from the total to calculate your remaining balance (line 9)
3. Payment Details
- Line 10: The IRS automatically divides your balance over 72 months as a guide
- Line 11a: Enter the monthly payment amount that you can comfortably afford.
- Line 11b: If your payment is less than the recommended amount in line 10 and you’re able to increase it, enter the updated higher amount here.
- If you can’t pay the recommended minimum, you’ll need to attach Form 433-F
4. Payment Date
- On line 12, select a payment date that falls between the 1st and 28th of each month.
5. Bank Info (Optional – Line 13)
- For Direct Debit, provide your bank routing number and account number on lines 13a and 13b.
- Direct Debit ensures on-time payments and may reduce fees
- If you’re a low-income taxpayer and unable to pay electronically, check the box on line 13c to potentially qualify for fee reimbursement.
6. Payroll Deduction (Optional – Line 14)
- If you prefer payroll deduction, select the box and attach Form 2159 with your submission.
7. Signature
- Sign and date the form
- If you’re filing jointly, both you and your spouse are required to sign
Where to Mail Form 9465
The mailing address for Form 9465 varies depending on your location.
- If you’re submitting Form 9465 with your tax return, attach it to the front and send it to the address shown in your tax return booklet.
- If you’re filing Form 9465 separately or in response to a notice, mail it by itself to the appropriate IRS Service Center. The correct address depends on your location, and you can find it in the “Where to File” section of the IRS Instructions for Form 9465.
Form 9465 vs. Online Payment Agreement
For balances under $50,000, you may not need to mail anything at all. The IRS allows many taxpayers to apply for an installment agreement online, which can be faster and more efficient. However, if you don’t qualify for the online application or prefer paper filing, Form 9465 is still your best option.
What Happens After You File Form 9465?
After submitting your request, the IRS will:
- Review your application
- Notify you of approval or denial
- Send you a confirmation letter with your payment plan details
If accepted, make your payments on time each month to avoid defaulting. Late or missed payments can void the agreement and restart the collection process.
Other Things to Keep in Mind
Here are some important things to consider before filing for a payment plan:
- Fees Apply: There is a setup fee for payment agreements—ranging from $22 to $178 depending on how you pay and whether you apply online or by mail.
- Interest Still Accrues: Penalties and interest continue to accumulate on the unpaid balance, even if you’re on a plan.
- Revocation Risk: The IRS can revoke the agreement if you miss payments or don’t file future returns.
Need Help Filing Form 9465?
Navigating the IRS’s installment payment process can be tricky, but with the right guidance, it’s manageable. If you’re feeling overwhelmed or unsure about how to proceed, Mayatax is here to help. Our experts can assist you in filling out Form 9465 correctly, understanding your payment options, and ensuring your tax situation is resolved efficiently.
Don’t let IRS penalties pile up. If you’re struggling with your tax debt, IRS Notice Resolution might be the solution you need to manage your payments effectively and avoid harsh IRS collection actions. Contact Mayatax today to start taking control of your tax resolution process.