Installment Agreement Request

IRS Form 433D is one of two IRS Forms used to set up an installment agreement request with the IRS. To set up an installment agreement with IRS Form 433D, you need to fill in the required information in the spaces provided including your name (spouse’s name if you filed a joint return), address, social security number, name and address of employer and name and address of your financial institution.

Also important on IRS Form 433D, you need to identify the kind of taxes, tax periods you owed and the total amount owed. You need to determine the amount to pay (monthly payment needs to be sufficient to pay tax balance within IRS timeframes) and the day you prefer to make your payment. The payment date must be the same day each month from the 1st to the 28th. There is a section where you can increase/decrease your payment amount and date(s) you wish to increase/decrease the payment. If you wish to have the payment direct debited from your bank account, you need to include on IRS Form 433D the name and address of your financial institution along with the bank’s routing number and your account number. When you have completed the IRS Form 433D, you need to sign and date it and return it to the IRS.

Note: By completing the IRS Form 433D for an installment agreement request, you enter into an agreement to pay your liabilities (including penalties and interest) until they are paid in full, the statutory period for collection expires, or the agreement is terminated. You are required to make your payment by the monthly due date, these instructions are included on the instructions for IRS Form 433D. If you cannot make the payment, you are required to contact the IRS. You are required to file all federal tax returns and pay any taxes you owe on time. The IRS will apply any tax refund/overpayment to any taxes you owe starting with the earliest year or until the statutory period for collection has expired. You must pay a user fee to set up the installment agreement which is deducted from your first payment. If you default, you must pay a reinstatement fee if the IRS agrees to reinstate installment agreement.

The IRS can terminate the installment agreement when you don’t make the monthly payments as agreed, you don’t pay other federal tax liabilities when due (future tax balances) or you don’t provide financial information when requested. Depending on the amount of the taxes owed, management approval may be needed and the IRS may file a federal tax lien. Click here for more information about IRS Form 433D and other IRS tax forms and issues.

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