Form 9465, Installment Agreement Request, is how you ask the IRS for a monthly payment plan when you can't pay the tax shown on your return or a notice. As of October 2026, if you owe $50,000 or less you can usually apply online instead for a lower fee, a direct debit plan set up online costs $29, and the same plan by phone, mail or in person costs $107.
The form itself is short. The bigger decision is whether you need it at all, because an online application is cheaper and faster, and if you can clear the bill within 180 days there's no setup fee.
Payment plan setup fees
| Plan | Apply online | Apply by phone, mail or in person |
|---|---|---|
| Short-term plan (180 days or less) | $0 (individuals only) | $0 |
| Long-term plan paid by direct debit | $29 | $107 |
| Long-term plan paid another way | $69 | $178 |
| Low income, long-term plan | Direct debit fee waived; otherwise $43, which may be reimbursed | Same |
| Revising an existing plan | $6 | $89 ($0 for changes to an existing direct debit plan) |
Penalties and interest keep running until the balance is paid in full on every plan, so the setup fee is the smallest cost. Fees apply if you pay by card, and they go to a payment processor.
Who should use Form 9465, and who shouldn't
- Use it if you can't pay in full and don't want to, or can't, apply online.
- Don't use it if you can pay in full within 180 days. You save the user fee.
- Don't use it if you want to apply online, which an individual can do when they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns.
- Don't use it if your business is still operating and owes employment or unemployment taxes. The IRS says to call instead. Business taxpayers should call the number on the notice.
- Sole proprietors and independent contractors apply as individuals.
Guaranteed and streamlined agreements
Two types of plan are easier to get. You're eligible for a guaranteed installment agreement if you owe $10,000 or less, filed and paid on time for the past 5 tax years without an income tax installment agreement, can't pay in full, and agree to pay within 3 years. A streamlined installment agreement covers an assessed liability of $25,000 or less, or $25,001 to $50,000 for an individual or out-of-business sole proprietorship that pays by direct debit or payroll deduction. Your payments must clear the balance within 72 months, or by the collection deadline if sooner.
Above those levels, or if your proposed payment is too low, you'll likely need Form 433-F, Collection Information Statement, which shows your income, expenses and assets.
How to fill in Form 9465, step by step
- Enter your name, SSN or EIN, address and a daytime phone number.
- Enter the tax return or notice the request is for, and the total amount you owe.
- Enter any payment you're making with the request. Paying something now lowers the balance that accrues interest.
- Enter the monthly amount you can pay and the day of the month you want it taken.
- If you want direct debit, give your bank routing and account numbers. It's the cheaper option and you won't get monthly notices; your bank statement is your record.
- If your proposed payment is below the amount needed to pay within the time allowed, attach Form 433-F.
- Attach the form to the front of your return and send it to the address in your tax return booklet. If you've already filed or you're answering a notice, file it on its own as the instructions describe.
If you can't keep up the payments
The instructions are clear that your request will be denied if any required tax returns haven't been filed, so get every return in first. Once you have a plan, you have to file and pay future years on time too. If a later refund is applied to your balance, you still have to make your normal monthly payment. If your circumstances change, you can ask to modify or end the plan; revising it online costs $6 against $89 by phone, mail or in person. Missing payments without telling the IRS is what puts a plan at risk, so call before a payment fails, not after.
After the IRS accepts
Each month you get a notice of what you owe and the next payment, unless you pay by direct debit. You also get a yearly statement. Any refunds in future years are applied to the debt. If you're a small business owner trying to stay ahead next time, quarterly estimated tax payments are the usual way to avoid a big bill in April.
The verdict
If you owe $50,000 or less, skip the paper form and apply online with direct debit: it's $29 instead of $107 or $178, and it's the plan least likely to be missed. Use Form 9465 when you need to attach it to a return you're mailing anyway, or when you're outside the online limits. Either way, pay what you can upfront. The plan stops collection action, but interest and penalties don't stop until the balance is gone. If cash flow is the real issue, a look at alternative small business loans is worth it only if the cost is lower than what the IRS charges.
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Frequently asked questions
What is Form 9465?
It's the IRS Installment Agreement Request, used to ask for a monthly payment plan if you can't pay the full amount on your return or a notice.
How much does an IRS payment plan cost?
As of October 2026, a long-term direct debit plan costs $29 online or $107 by phone, mail or in person. Paying another way costs $69 or $178. Short-term plans have no setup fee.
Can I apply for a payment plan online instead?
Yes, individuals can apply online if they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns.
Can a business use Form 9465?
Not if it's still operating and owes employment or unemployment taxes. Business taxpayers should call the number on the notice. Sole proprietors apply as individuals.
Does interest stop on an IRS payment plan?
No. Penalties and interest continue to accrue until the balance is paid in full.
What is a guaranteed installment agreement?
A plan you're eligible for if you owe $10,000 or less, have a clean 5-year filing record, can't pay now and agree to pay within 3 years.
