If you owe the IRS and can’t pay all at once, you can pay over time with an installment agreement. Most individuals qualify and can set it up online in minutes; you can also file Form 9465. A plan stops the escalation toward levies as long as you keep up the payments.
Deadline: there’s no single deadline, but set this up before a Final Notice of Intent to Levy (LT11) or while responding to a balance notice. Penalties and interest continue until the balance is paid off.
Know before you propose
- Online is fastest — the IRS Online Payment Agreement tool approves most individual plans instantly (generally if you owe under the published threshold and are filed/compliant).
- Form 9465 is the paper route; Form 433-F (financial statement) may be required for larger balances.
- Pick a monthly amount you can truly sustain — a defaulted plan can restart collection.
- Set up direct debit where possible (often lower fees and fewer defaults). A user fee usually applies; low-income taxpayers may get it reduced or waived.
The cover letter (with Form 9465)
[Your name]
[Address]
[City, State ZIP]
[Daytime phone]
[Date]
Internal Revenue Service
[Use the address in the Form 9465 instructions or on your notice]
Re: Installment agreement request (Form 9465 enclosed)
Name: [Your name] SSN/ITIN: [xxx-xx-1234]
Tax year(s) / form: [years / form]
Total balance: $[amount]
To whom it may concern:
I am requesting an installment agreement to pay the balance above. I am enclosing
Form 9465 and proposing monthly payments of $[amount] on the [day] of each month,
by direct debit from the account listed on the form.
I cannot pay the balance in full at this time, but I can maintain these monthly
payments. Please hold enforced collection while this request is processed, and
confirm the approved terms in writing.
Sincerely,
[Signature]
[Printed name]
How to send it
Try the Online Payment Agreement at IRS.gov first — it’s instant and cheaper. If you mail Form 9465, use the address in its instructions (or attach it to the front of your return / notice), keep a copy, and continue making voluntary payments while you wait.
Notes. An installment agreement doesn’t reduce what you owe, only the schedule — if you genuinely can’t pay, look at Currently Not Collectible or an Offer in Compromise, and ask about penalty abatement to shrink the balance. General information, not tax advice; thresholds and fees change — verify at IRS.gov.