A form one files with the IRS when one agrees to pay back taxes in installments. That is, in Form 433-D, one agrees to pay a certain amount each month until the total tax liability is paid. One must include direct debit payment information on the form.
Form 433-D, Installment Agreement, is used by taxpayers who are unable to pay the whole amount of their imposed taxes and authorizes a direct debit payment arrangement for an IRS installment agreement. This means, using Form 433-D, they can arrange monthly payments.
Taxpayers who can use Form 433-D to set up a direct debit installment arrangement are those who owe federal income taxes. These taxpayers include individual taxpayers and wage earners, business owners, self-employed professionals, and out-of-business proprietors.
If a taxpayer deems that making monthly payments would result in a significant financial hardship, they may opt to use Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals; Form 443-B, Collection Information Statement for Business; or Form 433-F, Collection Information Statement, depending on their taxpayer status and situation.
When a taxpayer would want to set up a monthly installment agreement whereby he or she will mail payments by check, money order, or direct debit, he or she should use Form 9465, Installment Agreement Request.
If you owe more than $25,000 in taxes or collections, it is recommended that you file Form 433-D to help you or your company get back to good taxpayer standing.
Filing Form 433-D can keep a business lien-free and enable it to pay down its tax debt legally and manageably.
If even after the approval of your application for an installment agreement you still missed your agreed-upon monthly payments, failed to pay other federal tax debts by their due dates, and failed to provide financial information as requested by the IRS, the Internal Revenue Service (IRS) may terminate your agreement. Therefore, if you cannot make a payment, you must immediately contact the IRS or your attorneys about your options.
If in the event the IRS terminates the agreement, it can reinstate it but applicable fees will apply.
There are two pages for Form 433-D — the IRS copy and the taxpayer’s copy. They are identical so after filling out the first page of the form, you can simply copy the information to the second page.
Form 433-D would require your personal information, the amount you owe, the amount you will pay each period, and the terms and conditions.
Follow the instructions below to fill out Form 433-D correctly.
Name and Address of the Taxpayer(s)
Enter your full legal name and residential address. If filing with your spouse, enter his or her full legal name and address.
Mark the checkbox below this item to submit a new Form W-4 to your employer to increase your withholding.
Social Security or Employer Identification Number (SSN/EIN)
Enter your SSN or EIN. Also, enter the SSN or EIN of your spouse.
Enter your home phone number and/or work, cell, or business number.
Kinds of Taxes
Enter the form numbers of the kinds of taxes that you owe.
Enter the tax periods of the taxes you owe.
Amount Owed as of
Enter the amount of tax you owe as well as the latest date when you still owe them.
I/We agree to pay the federal taxes shown above, PLUS PENALTIES AND INTEREST PROVIDED BY LAW, as follows
Enter the amount you wish to pay initially, the amount you wish to pay each subsequent month, and the dates you will pay them.
I/We also agree to increase or decrease the above installment payments as follows
If you wish to increase or decrease the amount of your monthly payment in the future, indicate the date of increase (or decrease), the amount of increase (or decrease), and the new installment payment amount.
Provide your initials in the appropriate box and sign on the appropriate space to agree to the terms of the agreement, as provided in the form, if it is approved by the Internal Revenue Service.
Only complete this section if you choose to make payments by direct debit.
a. Routing number
Enter the account number of the checking account from which the IRS will withdraw your payment. The first two digits of the routing number must be 01 through 12 or 21 through 32. Do not use a deposit slip to verify the number because it may contain internal routing numbers that are not part of the actual routing number.
b. Account number
Enter the routing number of the checking account from which the IRS will withdraw your payment. Include hyphens but omit spaces and special symbols. Provide the numbers starting from the left and leave and unused boxes blank.
Debit Payments Self-Identifier
If you are unable to make electronic payments through a debit instrument by providing your banking information above, check the box “I am unable to make debit payments.” By not checking the box, you indicate that you are able but choosing not to make debit payments.
After ensuring that you have accomplished Form 433-D completely and accurately, provide your signature, enter the date when you signed the form, and your job title (if you’re a corporate officer or partner). If paying is a joint liabilty, your spouse should provide his or her signature and the date when he or signed the form.
Submit the first page of Form 433-D to the address on the letter that came with it or to the IRS Department of Treasury. If you are unsure where to mail it, you can call the applicable number in the “For Assistance” section found in the top-left part of the form.
You can pay through direct debit or through check. If you choose to pay through direct debit, fill out the section above regarding direct debit. If paying via check, every check should be payable to “United States Treasury,” then mail the check to the IRS Department of Treasury. Make sure to provide your SSN or EIN for each payment.
If by any chance you wish to pay double and skip a payment later, you must contact the IRS first.
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