Which IRS Form do I need for an Installment Agreement

If you are setting up a streamlined installment agreement (owe less than $50,000 and can pay within 72 months), you can also skip the forms and use the IRS’s online payment agreement tool.

The Form 9465 is used mainly by taxpayers to request and authorize a streamlined installment agreement. The Form 433-D is used to finalize an approved installment agreement and authorize payments by direct debit. The Form 9465 can be filed with a tax return. The Form 433-D cannot.

Prior to agreeing to an installment agreement, taxpayers may have to use one of the Form 433 series (i.e., Forms 433-A, 433-B, or 433-F, Collection Information Statements) to provide the IRS financial information. 

Important Aspects of IRS Form 433

The Form 433 series provides the IRS financial information about a taxpayer who needs an IRS ability to pay collection alternative (ability to pay installment agreement, currently not collectible status, or an offer in compromise). The Form 433 series is also called the “Collection Information Statement” (CIS).  The statement provides detailed information to the IRS about income, expenses, assets, and liabilities. The CIS also provides the IRS more information about employment, banking, and business operations. The IRS can use this information, with supporting documents to prove the items on the CIS to determine how much the taxpayer can pay the IRS from assets and monthly disposable income.

Once the IRS has the CIS, it has sources of income and location of assets. These sources could be potential levy sources if the IRS deems that the taxpayer is uncooperative or unresponsive and collection enforcement is required.

The IRS has five different Forms 433. Three of these forms are for individual IRS collection agreements and two are for businesses. Each form has the same purpose: to supply the IRS information needed to make a collection determination. However, the different forms apply to different types of taxpayers or situations.

Individual Collection Information Statements

Form 433-A, Collection Information Statement for Wage Earners and Self-employed Individuals: Form 433-A is the “long-form” CIS for individuals and individuals who report their small business on the Form 1040. This form is normally requested in IRS field collections situations (i.e., with a revenue officer).

Form 433-F, Collection Information Statement: Form 433-F is the most widely used CIS by individuals. Taxpayers using a Form 433-F usually make their income from wages or independent contractor income.  This form is only 2 pages long compared to the 6-page Form 433-A.

Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-employed Individuals: Form 433-A (OIC) is used by individual taxpayers who are applying for an Offer in compromise. This form allows the taxpayer and the IRS to determine if the taxpayer qualifies for an OIC. If they qualify, the Form also allows the taxpayer to calculate the offer amount.

Business Collection Information Statements

Form 433-B, Collection Information Statement for Businesses: Form 433-B is used by business taxpayers when requesting an ability to pay agreement with the IRS.

Form 433-B(OIC), Collection Information Statement for Businesses: Form 433-B(OIC) is used by business taxpayers who are applying for an Offer in compromise to settle business liabilities. This form allows the taxpayer and the IRS to determine if the business qualifies for an OIC. If the business qualifies, the Form also allows the taxpayer to compute the offer amount.

For assistance creating a strategy to address your tax issue, visit Jackson Hewitt’s Tax Resolution Hub to see the various ways we can help you.

About the Author

Jim Buttonow, CPA, CITP, is the Senior Vice President for Post-Filing Tax Services at Jackson Hewitt. He’s been a leader in helping taxpayers and tax professionals resolve tax problems with the IRS, where he had worked for 19 years in various compliance-enforcement positions. Prior to his current role, Jim’s consulting practice focused on the areas of tax controversy and tax administration, which included leading product development on tax problem software for tax professionals, testifying before Congress, advocating for IRS transparency and efficiency, and proposing innovative large-scale solutions for taxpayers and tax professionals. Jim is also the author of Tax Problems and Solutions Handbook, a publication aimed at helping tax pros work more effectively in post-filing matters and resolving their clients’ most common tax problems.

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