The IRS Installment Agreement form 433 D is used by taxpayers when they can’t afford to pay their taxes in full. The Installment Agreement breaks up an overdue tax balance into smaller monthly payments. The information on the 433 D form also describes the total amount the taxpayer owes the IRS and includes the exact amount they’ll pay each period.
Form 433 D: Instructions and Guidance for Taxpayers
Individual taxpayers, wage earners, business owners, self-employed individuals, and out-of-business sole proprietors can all use the 433 D form to make their tax-paying process easier. Though there are a lot of advantages to submitting the form, without the help of a tax professional the process of downloading the 433 D and filling it out correctly can be daunting—not anymore.
This post is going to help you with all that, from defining what the IRS 433 D is, who it’s meant for, how you fill it out, and the link to download it.
What is IRS Form 433 D?
Form 433-D is the basic installment agreement that immediately follows the IRS 9465 form (Installment Agreement Request).
While the IRS provides several types of installment agreements to taxpayers, the 433-D often leads to a direct debit installment agreement or a general payment. Direct debit installment agreements are encouraged when a payroll deduction agreement (Form 2159) is not practical or appropriate, or if a taxpayer has defaulted on previous installment agreements.
The direct debit installment agreement formalized by Form 433-D means that funds are automatically debited from a taxpayer’s checking account for the agreed-upon installment amount. It affords the taxpayer a lower user fee than a regular agreement. The Electronic Federal Tax Payment System (EFTPS) is used to process all direct debit installment payments.
Form 433-D also includes the terms of the agreement, including the first payment date, which is typically 60 days from the date that the installment agreement is established. Some taxpayers still choose a general payment installation agreement and send a check or money order to the IRS.
Who needs a Form 433 D?
If you submitted Form 9465, then the financial information you provided on either Form 433-A or Form 433-F was also reviewed. Once the IRS officer reviews your submission request for an installment agreement, the IRS requires individuals and self-employed taxpayers who owe federal income tax and received approval for an installment agreement to fill in and sign Form 433D to finalize the payment plan.
If you wish to enter into an installment agreement, then you can fill out Form 433D. The filer must also include their spouse’s information on the form. These agreements are usually limited to individuals without delinquent employment taxes and out-of-business sole proprietors. In certain cases, revenue officers can grant an installment agreement to in-business taxpayers. In this case, a business would receive a request from the IRS to submit Form 433-D during the collection process.
How do I fill out Form 433 D?
Be as detailed as possible when you fill out Form 433 D because the IRS returns incomplete forms. Use N/A instead of leaving boxes unfilled when necessary.
Here’s a step-by-step process of filling out the form 433 D:
- Fill in the name and address of the taxpayer(s), including social security numbers for the taxpayer and spouse. You should also include telephone numbers.
- Then, check the box if you wish to submit a new W-4 form to your employer to prevent you from owing such a large tax bill next year.
- Include your employer information and the name and address of your financial institution.
- This is where you set the terms of the agreement. Indicate the initial payment amount you’re enclosing with your Form 433-D followed by the amount you intend to pay per month subsequently. Include a recurring day of each month. The IRS wants to know when they can expect future payments.
- You have the option to increase or decrease the amount you pay on a future date. Include the date of the increase/decrease, as well as the amount of the increase/decrease. Finally, total the new installment payment amount resulting from the increase/decrease.
- Initial the box after you’ve reviewed all terms and conditions on the back of the form.
- If you choose to make direct debit payments from your checking or savings account, then enter your routing number and account number in the box marked “Direct Debit.” Attach a voided check to the installment agreement.
- Finally, make sure that you and your spouse, if applicable, sign and date the form before submitting it to the IRS.
When is Form 433D due?
Before the IRS can implement your Installment Agreement, they will request that you sign and submit Form 433-D. They will include specific instructions including a deadline so that the agreement is received and applied. Make sure to handle the request promptly to avoid any problems in the collection process.
Where do I send Form 433 D?
Mail Part I of the completed 433-D and related document(s) to the IRS at the address on the letter that came with it or the address shown in the ‘For Assistance’ Box on the front of the form.
Is Form 433 D accompanied by other series of forms?
- You can attach Form 433-D to Form 9465 (Installment Agreement Request). However, the request is not a guarantee that your request will be approved.
- Attach a Form 2848 Power of Attorney, if you would like your attorney, CPA, or qualified representative to represent you. This will allow that individual to receive and inspect your confidential business tax information.
- If you want the IRS to allow you to submit a reduced user fee rather than the $120 user fee required with the form, then you should submit Form 13844, Application for Reduced User Fee for Installment Agreements. Form 13844 also requires that you include Form 433-A if your income recently decreased. You may be eligible for a reduced user fee of $43.
- You are requested to submit a voided check if you choose to make payments by direct debit.
IRS Form 433-F vs. 433-B, and 433-A
- IRS Form 433A serves as an information statement for self-employed individuals and wage earners within the tax collection process.
- IRS Form 433B functions as an information statement for businesses during tax collection procedures.
- IRS Form 433F is a comprehensive tax collection information statement applicable in various scenarios.
The ‘For Assistance’ Box can be found on the top right-hand side of the form under the telephone numbers you provided to the IRS. You may wish to send it by Certified Mail so you have a record of the date it was mailed. Get started on your form now, download the 433 D here, and fill it out online.
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