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Form 9465 – Installment Agreement Request

An installment agreement allows the taxpayer to breakdown their tax debt into manageable payments.  Usually an installment agreement requires equal monthly payments based on the amount of taxes owed, the amount of money the IRS can collect at one time, and the amount of time they are allowed to collect the funds from the taxpayer.  Installment agreements are not an ideal way of paying a tax debt, since the taxpayer will still accrue late payment penalties and interest over the life of the agreement.

Form 9465 can be used to request an installment plan, but should not be used if the taxpayer plans to pay their tax debt within 120 days, or if they want to use the IRS Online Payment Agreement Application to apply for an installment agreement.  To review the instructions for an Installment Agreement Request, click here. Installment agreements are not guaranteed.

The IRS will notify an individual within 30 days of receiving the agreement if it has been approved or denied. Agreements for less than $10,000 will generally be accepted as long as:

  • During the last 5 years, the taxpayer (and spouse if filing jointly) has timely filed all income tax returns, paid any amount due, and have not previously used an installment agreement.
  • The IRS determines that the taxpayer cannot pay the taxes owed when they are due in full, and the taxpayer gives the IRS any information needed to make the determination.
  • The taxpayer agrees to pay the full amount within 3 years and agree to abide by tax laws while the agreement is in effect.

To create Form 9465, from the Main Menu of the tax return (Form 1040) select:

  • Miscellaneous Forms
  • Installment Agreement Request (9465)
  • Fill out all information in Basic Information section
  • Complete the form based on what the taxpayer is able to pay and the date they expect to be able to pay it.
  • Indicate whether or not the payments should be debited directly from the client’s bank account.  If YES, enter bank account information.

NOTE: This is a guide to creating Form 9465 in the Keystone Tax Solutions Pro program. This is not intended as tax advice.

Updated on September 9, 2020

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