We've put together a brand new video to help you when you're working on an installment agreement. In this video, we cover some quick tips on how to fill out IRS Form 9465. Watch it below and subscribe to our Youtube channel to be notified when we put out other helpful videos.

Video transcript: 

Today we’re talking about IRS form 9465: Installment Agreement Request Form. This is a pretty simple form, but we’ve got a few pointers for you that will make filling out the 9465 even easier.

Tip 1: What is IRS Form 9465 and When Should I Use It?

IRS Form 9465 is a collections form, meaning it’s only useful if your client owes back taxes to the IRS. Specifically, form 9465 is used when setting up an installment agreement, or payment plan, on behalf of your client. However, there are several reasons not to use form 9465 even when setting up an installment agreement for a client.

If your client owes less than $50k, don’t use the 9465. Instead, use the IRS’s online payment agreement tool for a faster, smoother experience.

If your client currently owns a business, don’t use the 9465. Potential complications (such as overdue payroll taxes) are more than form 9465 is designed to handle. Instead, get in contact with the revenue officer assigned to your client and start the process of filling out a form 433-D.

In other words, if your client has a tax debt of more than $50k and doesn’t own a business, form 9465 is the right installment agreement collections form for you.

Tip 2: Ditch the Pen

One of the most surefire ways to get any form rejected is to submit something illegible. Revenue officers don’t have time to try to figure out if you wrote a 1 or a seven. If they can’t read it, they’re likely to reject it. Even if you don’t use automated form filling software like Canopy, all the forms on the IRS website are editable PDFs that you can fill out right in your browser, no software required.

(Click here to fill out form 9465 online.)

Tip 3: How much do you put on line 11a?

Most of the fields on form 9465 are self-explanatory and don’t require any explanation. However, line 11a instructs you to ‘Enter the amount you can pay each month,’ which means you have a choice to make. How much?

Option 1: The minimum

The IRS sets the (sort of) minimum monthly payment at tax debt divided by 72. So if your client owes $64,800, the minimum monthly payment would be $900.

Option 2: More than the minimum

The IRS doesn’t mind if your client pays off their debt in less than 72 months. In fact, they like that a lot. If your client has the ability, paying more than the minimum will not only clear their debt faster but will help reduce the amount your client will have to pay in penalties and interest in addition to their debt.

Option 3: Less than the minimum

It’s not ideal, but the IRS will still grant an installment agreement even if the most your client can pay is less than their debt divided by 72. However, you will need to submit a Collections Information Statement (form 433-F) along with form 9465.

Recap

Use form 9465 to set up an installment agreement for a client who owes more than $50k and doesn’t own a business.

Your forms should always be easy to read. Even if you don’t have automated form filling software, use your computer to fill out form 9465 online.

The minimum monthly payment for an installment agreement is the client’s debt divided by 72. Paying more than the minimum will help lessen penalties and interest, paying less than the minimum will require submitting form 433-F along with your installment agreement request.

That’s it! Please like and subscribe to be notified of new content. Also, let us know in the comments if you have any questions about this form or requests for forms you’d like to see us cover in the future.