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Completing Form 9465 installment agreement for e-filing in ProSeries

by Intuit Updated 1 month ago

Starting in tax year 2017, you can no longer make an e-payment with Form 9465. You must either pay by mail or online through the IRS.

What is Form 9465?

Form 9465, Installment Agreement Request, is used to request a monthly installment plan if you can't pay the full amount you owe shown on your tax return (or on a notice IRS sent you).

How do I apply for an installment agreement online?

The taxpayer can apply for an installment agreement online and receive immediate notification of approval. Go to the IRS website, hover over Pay on the navigation bar at the top of the screen, and select Payment Plan (Installment Agreement). From there, click the Apply/Revise as Individual button.

Taxpayers qualify for the long-term payment plan if they owe $50,000 or less in combined tax, penalties and interest, and filed all required returns. They qualify for the short-term payment plan if they owe less than $100,000 in combined tax, penalties and interest.

How do I apply for an installment agreement electronically or by mail?

To request an installment agreement, the taxpayer must complete Form 9465. Form 9465 can be included electronically with an e-filed return or paper-filed. When filing a paper return, complete Form 9465, attach it to the front of your client's return before mailing. They should receive a response to the request for installment payments within 30 days. 

If the return is filed after March 31, it may take the IRS longer to reply. If the return has already been filed or you're filing this form in response to a notice, mail it to the Internal Revenue Service Center address shown below the client address.

If the taxpayer has an installment agreement from a prior year, they can't file Form 9465. When the IRS agreed to let them make installment payments on their old tax bill, they agreed they'd pay future taxes on time through income tax withholding from their wages or by making estimated tax payments. Any future refunds will be applied against their remaining balance.

Follow these steps to complete Form 9465 for e-filing:

  1. On the Federal Information Worksheet, scroll down to Part VIII, Direct Deposit and Refund Disbursement Options.
  2. Under the Direct Deposit subsection in the Account type field, select either the Checking or Savings checkbox.
  3. Enter your Routing number, Account number and the Name of Financial Institution (optional).
  4. On the Federal Information Worksheet, scroll down to Part IX - Electronic Funds Withdrawal Options.
  5. Select No to Use electronic funds withdrawal for federal balance due (EF only).
  6. Under the Other Direct Debit section, click the QuickZoom to open Form 9465 to enter information for Installment Agreement Request button.
  7. On Form 9465, Line 8, enter the amount of the payment you'll make with the return.
  8. On Line 11(a), enter the amount you can pay each month.
  9. On Line 12, enter the date you wish to make your payment each month.
  10. Select the box on Line 13, if required.

You can send Form 9465 with the e-return, but the IRS must still approve the installment agreement form. The IRS may also require you to mail a check to them for processing the initial payment before the agreement is in effect. We recommend you contact the IRS to make sure they approved the installment agreement or not, and for any other guidance.

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