433-D vs 9465: Key Differences for IRS Payment Plans and Forms
Understand how IRS Forms 433-D and 9465 support different payment plan processes and what each requires for accurate filing.
If you owe taxes to the IRS and cannot pay immediately, establishing a payment plan is a common solution. However, navigating the required paperwork, particularly distinguishing between Form 433-D and Form 9465, can be challenging. These forms play different roles in the installment agreement process.
Using the correct form at the right time is necessary for a smooth application. Understanding their distinct functions helps avoid delays and complications in meeting your tax obligations. This guide clarifies the purpose and use of each form.
Purpose of Form 9465
When you need to pay your tax debt over time, Form 9465, Installment Agreement Request, is typically the first step. This form serves as your formal application to the IRS, asking for permission to make monthly payments towards your outstanding balance.
You generally use Form 9465 if you owe income tax (from Form 1040 or 1040-SR), certain employment taxes from a closed sole proprietorship, or a trust fund recovery penalty. It shows the IRS you acknowledge the debt and are seeking a structured repayment plan. Taxpayers owing a combined total of $50,000 or less (including tax, penalties, and interest) can often use this form or apply through the IRS Online Payment Agreement (OPA) tool.1Internal Revenue Service. Payment Plans, Installment Agreements
Submitting Form 9465 initiates the request process. The IRS reviews your application, considering the amount owed and your history of tax compliance. If you owe more than $50,000, you will likely need to submit Form 433-F, Collection Information Statement, along with Form 9465 to provide details about your financial situation.2Internal Revenue Service. Instructions for Form 9465 (07/2024)
Purpose of Form 433-D
Form 433-D, Installment Agreement, is not used to request a payment plan but rather to finalize the terms once the IRS has tentatively approved your request. It functions as the official contract detailing your payment obligations.
This form is most commonly used to set up automatic monthly payments directly from your bank account, known as a Direct Debit Installment Agreement (DDIA).3Internal Revenue Service. Form 433-D, Installment Agreement By completing and signing Form 433-D, you authorize the Treasury to withdraw the agreed-upon amount each month. The IRS may require a DDIA, finalized with Form 433-D, for taxpayers with higher balances who applied online, such as individuals owing over $25,000 or businesses over $10,000.
The IRS typically sends Form 433-D to you after reviewing and provisionally accepting your installment request. Completing this form, including providing bank details for automatic withdrawals, solidifies the payment arrangement.
Items Needed for Form 9465
To complete Form 9465, you need basic identifying information: your name (and spouse’s, if applicable), current address, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If the debt relates to a defunct business, an Employer Identification Number (EIN) might be needed.
You must also provide tax details, including the relevant tax form number (like Form 1040) and the tax year(s) involved. State the total amount you owe according to your return or the latest IRS notice.
A proposal for your payment plan is required. Indicate the monthly amount you can afford to pay and suggest a preferred payment date (1st to 28th). The IRS encourages paying as much as possible monthly to minimize interest and penalties, which continue to accrue until the debt is paid. If your total debt exceeds $50,000, remember that Form 433-F, detailing your finances, is usually required alongside Form 9465.
Items Needed for Form 433-D
Finalizing an agreement with Form 433-D requires specific details, especially for setting up direct debit payments. You will need your identifying information (name, address, SSN or EIN) and contact phone numbers.
The form requires you to confirm the exact monthly payment amount and the day of the month (1st to 28th) for the withdrawal, matching the terms previously agreed upon with the IRS. You also need to identify the tax type and periods covered.
For direct debit, accurate banking information is essential. You must provide the routing and account number for the checking account to be used. Ensure these numbers are correct to avoid payment issues. Your signature confirms acceptance of the terms and authorizes the automatic withdrawals.
Filing Steps
The process for submitting payment plan forms varies. For initiating a request, many taxpayers owing $50,000 or less can use the IRS Online Payment Agreement (OPA) tool on IRS.gov, which is often faster and involves lower setup fees than mailing Form 9465.4Internal Revenue Service. Online Payment Agreement Application
If applying online isn’t feasible (e.g., owing over $50,000 requires Form 433-F) or you prefer mail, submit the paper Form 9465. If filed with your tax return, attach it to the front. If filed separately, mail it to the specific IRS Service Center address listed in the Form 9465 instructions, which depends on your location.5Internal Revenue Service. Instructions for Form 9465 (07/2024)
Requesting an installment agreement involves user fees. As of early 2025, fees are lowest for online applications with direct debit ($22) and highest for mailed applications without direct debit ($178). Other rates apply for online applications without direct debit ($69) or mailed applications with direct debit ($107). Low-income taxpayers may qualify for reduced fees ($43) or waivers, potentially requiring Form 13844, Application for Reduced User Fee for Installment Agreements.6Internal Revenue Service. Payment Plans, Installment Agreements Remember, interest and penalties continue until the tax debt is fully paid.
The process for Form 433-D is different as it formalizes an agreement, usually a DDIA. The IRS typically mails this form to you after tentatively approving your request. You must verify the pre-filled information, provide bank details if setting up direct debit, select a payment date, sign, and return it to the address specified in the accompanying IRS notice, not the general address for Form 9465. Returning the signed Form 433-D finalizes the DDIA. Keep a copy for your records.