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IRS Form — Installment Agreement

Form 433-D — Installment Agreement

Form 433-D is the IRS installment agreement form — it is the actual agreement document signed by the taxpayer and the IRS when a direct debit installment agreement is established. It is different from Form 9465 (the application for an installment agreement). For tax professionals, Form 433-D is used when the IRS requires a direct debit installment agreement (DDIA) — typically for balances over $25,000 or when the taxpayer has defaulted on a prior agreement.

✓ Verified 2026 Form 433-D Rules
✓ DDIA Threshold Confirmed
✓ Default Rules Confirmed
✓ User Fee Confirmed
DDIA
Direct Debit Installment Agreement — Required Over $25,000
Form 9465
Application for Installment Agreement (Different Form)
Default
IRS Can Terminate Agreement — Failure to Pay or File
IRC §6159
Installment Agreement Authority

Key Rules and Authority

RuleDetail
DDIA RequiredBalances over $25,000
User Fee$31 (DDIA); $130 (non-DDIA)
Low Income Fee$43 (waived for low income)
Default TriggersFailure to pay, failure to file, new balance
ReinstatementOne reinstatement allowed
Tax LienFiled for balances over $10,000 in most cases

Form 9465 vs. Form 433-D — The Difference

Form 9465 is the application for an installment agreement — the taxpayer submits it to request a payment plan. Form 433-D is the actual installment agreement document — it is the contract between the taxpayer and the IRS that establishes the payment terms. For balances under $50,000 (and in compliance with filing requirements), the IRS typically grants a streamlined installment agreement without requiring Form 433-A or 433-B. For balances over $50,000, the IRS requires a full financial disclosure (Form 433-A or 433-B) before granting an installment agreement. The DDIA (direct debit) is required for balances over $25,000 and provides a lower user fee.

Frequently Asked Questions

My client defaulted on their installment agreement. What happens next?
When a taxpayer defaults on an installment agreement (by missing a payment, failing to file a required return, or incurring a new balance), the IRS sends a Notice of Intent to Terminate Installment Agreement (CP523). The taxpayer has 30 days to cure the default before the agreement is terminated. To reinstate the agreement, the taxpayer must: (1) bring the payments current; (2) file any missing returns; and (3) pay any new balance or include it in the agreement. The IRS allows one reinstatement per agreement. If the agreement is terminated, the IRS can resume collection actions (levy, lien) immediately. The taxpayer must apply for a new installment agreement, which may require a full financial disclosure.
Installment Agreement Advisory

Form 433-D — DDIA setup, default prevention, reinstatement — is a foundational service for clients with IRS payment plans. Join the Uncle Kam marketplace.

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Quick Reference
DDIA RequiredOver $25,000
User Fee (DDIA)$31
User Fee (non-DDIA)$130
Default NoticeCP523 — 30 days to cure
ReinstatementOne allowed
Tax LienFiled over $10,000

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