What is Form 433-D?

IRS Form 433-D is one of the set of forms used to set taxpayers up with a tax resolution. This particular form is used to apply for an Installment Agreement, which breaks up an overdue tax balance into smaller monthly payments.

Filing Form 433-D carefully and accurately is very important, as it can impact whether an individual’s settlement plan is accepted. It is important for any taxpayer to note that they must specify the amount they could afford to pay each month when they submit the form. Additionally, anyone filing Form 433-D installment agreement should make themselves aware of the terms of their installment agreement before signing.

Let’s go over what you need to know about IRS Form 433-D. We’ll also offer step-by-step instructions on how to fill it out in a section further down.

Who Needs Form 433-D?

Those seeking an installment agreement with the IRS need to fill out IRS Form 433-D. However, it’s crucial to know that this is not the first step in the installment agreement process. Prior to filling out and submitting Form 433-D, taxpayers must first fill out Form 9465. This form is the Installment Agreement Request. You can submit the two forms at the same time, but there’s no guarantee that your 433-D will be processed prior to the approval of your IRS Form 9465.

Those who either are self-employed, and so don’t have their income automatically adjusted for taxes, or those who owe federal taxes and have successfully applied for an installment agreement, may be required to fill out and submit Form 433-D.

Form 433-D essentially sets up the installment agreement after you have requested it and it has been granted by the IRS. You must supply your bank account information on Form 433-D for the US Treasury to automatically withdraw the agreed-upon amount from your checking each month. However, you can revoke authorization to withdraw funds, but you must call the IRS and ask to cancel 14 days before the payment date.

If you’re uncertain whether you need to fill out this form, you can contact a Community Tax resolution specialist who will walk you through the process of applying for an installment agreement.

How to Fill Out Form 433-D

Let’s walk through step-by-step instructions on how to fill out Form 433-D installment agreement. (Remember, if you have not yet requested an installment agreement, be sure to first fill out and submit IRS Form 9465.)

  1. First, make sure you download a copy of the form.
  2. Next, fill out the top section. It asks for your name, address, Social Security or Employee Identification Number, and your phone number.
  3. Next, fill out the box asking what kinds of taxes you are trying to obtain the installment agreement for.
    1. Be sure to include the form numbers corresponding to the relevant tax forms.
    2. You’ll also indicate the period the taxes were from, and the amount that you owe.
  4. After that, you’ll indicate the amount you wish to pay initially, and the amount you’ll pay each subsequent month.
    1. In this section, you can indicate if there is a date in the future when you wish to increase or decrease your monthly payment, plus the amount of that change.
  5. In the DIRECT DEBIT section, you can include the account number and routing number of the checking account from which the IRS will withdraw its allotted payment, if you intend to pay by this method.
    1. You can also attach a voided check if you prefer
  6. You can also choose not to pay by debit, and instead mail the IRS a check each month.
  7. Lastly, you must sign and date the form.

Note: Be sure to read through the agreement information on the back side of the form if you are curious about the exact terms of the agreement.

IRS form 433-D can be complicated, and the process of setting up an installment agreement even more so. It’s okay if you’re a little lost. That’s where Community Tax can help. One of our professional resolution specialists can help walk you through the process to make sure your IRS debts are accounted for.