IRS payment plan checklist: Form 9465 or the online payment agreement

Who it is for

A sole proprietor, independent contractor or other individual who owes on a Form 1040, and an operating business that owes employment or other business taxes and needs to call instead.

When to use it

Use it before you apply, to pick the right route and have the numbers ready. File every required return first; the online plans and the streamlined terms both depend on it.

The deadline and form it relates to

• Individuals can apply online for a simple payment plan when they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns (IRS — Online payment agreement application).
• A short-term plan (180 days or less) is available online to individuals who owe less than $100,000 (IRS — Online payment agreement application).
• Sole proprietors and independent contractors apply as individuals (IRS — Online payment agreement application).
• Business accounts cannot apply online; the IRS says to call the number on the notice or 800-829-4933 (IRS — Online payment agreement application).
• Form 9465 is not for an operating business that owes employment or unemployment taxes; that business calls the number on its most recent notice (IRS — Instructions for Form 9465 (07/2024)).
• Long-term plan setup fees are $29 online or $107 by phone, mail or in person with direct debit, and $69 online or $178 otherwise; low-income applicants pay less or nothing (IRS — Payment plans; installment agreements).
• A streamlined agreement must pay the assessed balance within 72 months or by the collection statute expiration date, whichever is less (IRS — Instructions for Form 9465 (07/2024)).
• For a balance over $25,000 and up to $50,000, a streamlined agreement on Form 9465 generally needs direct debit, or payroll deduction with Form 2159; otherwise the instructions call for Form 433-F (IRS — Instructions for Form 9465 (07/2024)).
• Form 9465 lets you choose the payment day of the month, from the 1st to the 28th (IRS — Instructions for Form 9465 (07/2024)).
• If the amount owed on Form 9465 line 9 is over $50,000, the instructions require Form 433-F (IRS — Instructions for Form 9465 (07/2024)).

The template

Replace every [BRACKETED] field and delete any line that does not apply. Keep a copy of everything you send.

IRS PAYMENT PLAN CHECKLIST

Step 1 — Know the balance
[ ] Total owed (tax + penalties + interest): $[AMOUNT], per [notice CP___ dated ___ / online account on ___]
[ ] Every required return is filed: [YES / list missing returns and file them first]

Step 2 — Pick the route
[ ] Individual (including sole proprietor or independent contractor), owe $50,000 or less → apply online (Online Payment Agreement)
[ ] Individual, can pay in full within 180 days and owe less than $100,000 → short-term plan online
[ ] Business still operating that owes employment or other business taxes → call the number on the notice or 800-829-4933
[ ] Individual who cannot or will not apply online → Form 9465 by mail

Step 3 — Numbers to have ready
[ ] Monthly payment you can afford: $[AMOUNT] (larger payments mean less interest)
[ ] Payment day of the month: [1st–28th]
[ ] For direct debit (lower setup fee): bank routing number [_________] and account number [_________]
[ ] If owed is over $25,000 and up to $50,000 on Form 9465: direct debit or payroll deduction (Form 2159), or a Form 433-F
[ ] If owed is over $50,000: Form 433-F, Collection Information Statement, with documents

Step 4 — After approval
[ ] Keep every future return filed and paid on time; note the plan's due date in [CALENDAR]
[ ] Save the acceptance letter dated [DATE] and the plan terms

Notes: [ANYTHING THE AGENT SAID, WITH DATE, TIME AND ID NUMBER]

What to attach

• Form 433-F with supporting documents, if the balance is over $50,000 or the monthly payment is below what the IRS calculates.
• Form 2159, if you choose payroll deduction.
• Nothing, for most online applications; have the bank routing and account numbers ready for direct debit.

Where to send it

• If the return is already filed or you are answering a notice, Form 9465 is filed by itself with the service center listed in its instructions (IRS — Instructions for Form 9465 (07/2024)).
• For a Utah resident not filing Schedule C, E or F for the plan years, that address is Department of the Treasury, Internal Revenue Service, 310 Lowell St., Stop 830, Andover, MA 01810 (IRS — Instructions for Form 9465 (07/2024)).
• A Utah resident filing Form 1040 with Schedule C, E or F for those years uses Department of the Treasury, Internal Revenue Service, P.O. Box 9941, Stop 5500, Ogden, UT 84409 (IRS — Instructions for Form 9465 (07/2024)).

Official forms and pages

• Online payment agreement (IRS)
• Form 9465 (PDF, IRS)
• Form 433-F (PDF, IRS)