What Is IRS Form 9465?
IRS Form 9465 is used for requesting and implementing an installment agreement on tax payments.
Typically, Form 9465 is used when someone files their taxes but finds that they owe more than they can immediately pay.
In that case, you can file Form 9465 and begin making installment payments on your taxes due.
However, keep in mind that even if you have Form 9465 in place with the IRS, they’ll still charge you late penalties and interest on those payments.
Who Should (and Shouldn’t) File Form 9465?
If you’ve just filed your taxes and the amount you owe is more than you can pay, you should file Form 9465.
With that said, not everyone can file for an installment agreement with the IRS. There are several situations outlined by the IRS that will keep them from approving your request for an installment agreement.
Assuming don’t owe more than $10,000 in taxes, you as the taxpayer must meet these requirements to be automatically approved for an installment agreement:
- Must have filed all necessary previous tax returns
- You haven’t entered into a previous installment agreement within the past 5 years
- You can pay the entirety of your back taxes within 3 years
What Are My Payment Plan Options?
According to the IRS, they offer two payment plans depending on your balance:
- Long-term (i.e. an installment agreement): If you owe $50,000 or less in combined tax, penalties, and interest.
- Short-term payment plan: If you owe less than $100,000 in combined tax, penalties, and interest.
You must fit one of these qualifications to set up a payment plan using Form 9465 with the IRS.
How to Fill Out Form 9465
Now, let’s talk about how to fill out Form 9465.
It’s a short form but has lots to potentially check off and fill in, so it can be a little intimidating.
Fortunately, it’s an easy form to complete and doesn’t take long.
You have two options for completing Form 9465 and requesting an installment agreement:
e-File online
By far the easiest and fastest way to complete Form 9465, most major tax preparation software such as TurboTax is authorized to complete Form 9465 for you.
Unless you have a preference for physically mailing it in, this should be the method you choose as it will get you a response faster.
Fill out and send through mail
Filling out and mailing Form 9465 is an option as well. Start by downloading and printing Form 9465 here: Form 9465.
Start by filling out your basic information:
Form 9465 is separated into just two major sections, but each has quite a bit of questions.
However, in Part I, the questions are for the most part easy and straightforward:
Once Part I is complete, it’s simply on to Part II to finish up the form:
Again, quite a few basic questions so not much difficulty:
Finally, don’t forget to sign and date it (located at the bottom of page one) and you’re all done!
If any section of Form 9465 is confusing, you can find out more information about how to fill out IRS Form 9465 directly from the IRS here: Instructions for Form 9465.
Can You File Form 9465 Electronically?
Yes, you can file Form 9465 electronically through most major tax software.
However, you can only file electronically if the amount you owe is less than $50,000.
How to Set Up a Payment Plan with the IRS
To set up an installment plan with the IRS, use their Online Payment Agreement tool to sign up online and apply.
You’ll need to create an ID.me account before logging into the platform, but once you’re in, simply follow the prompts and you can get everything done conveniently online:
How Much Will I Pay the IRS In Interest and Penalties?
When paying overdue taxes, interest and penalties typically cost:
- Penalties: .5% per month, not exceeding 25% of unpaid taxes
- Interest: Currently 8% per year (See latest IRS notice here)
Keep in mind that interest rates are subject to change, so the amount listed here may not be the current interest rate you’ll pay via your installment agreement.
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