Taxing Thursday: The Truth About Form 9465

(And What You Should Do Instead)

One of the things I love most about this industry is that it’s always changing. We’re constantly learning, adapting, and finding smarter ways to help our clients.

But here's something I want to be super clear about:

Setting up an installment agreement for a client? That’s not tax prep. That’s a service. And you should be charging for it.

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Why I Don’t Use Form 9465

Over the last few weeks, I’ve seen a lot of questions in tax pro groups about whether to file Form 9465 when a client can’t pay their balance. And look — Form 9465 is still technically valid. But in my experience, it’s outdated, slow, and often unreliable.

It’s processed manually, and the timing is unpredictable. Sometimes it’s handled in a few weeks. Other times, it takes months — or just disappears entirely. Meanwhile, your client is receiving IRS notices and wondering why you haven’t resolved the problem.

(True story — I’ve been there. It’s not fun.)

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What I Do Instead — And Why It Works

When a client needs a payment plan, I take a more modern approach that’s faster, trackable, and gives me control over the process.

Here's my method:

1. I get a signed Form 2848 (Power of Attorney) — and I mean a wet signature. Always, always. (If you end up faxing this, the IRS will not accept electronic signatures.)

2. I submit the POA to the CAF Unit.
   Currently, processing time is around 16 days. You can fax this to the CAF Unit or submit online. My preferred method: Submit Forms 2848 and 8821 online. If your client has an IRS Online Account, they can grant you access instantly — a huge time-saver.

3. Once the POA is active, I log into my IRS Tax Pro Account and use the OPA (Online Payment Agreement) system.

And if, for some reason, the online system isn’t available — or the client doesn’t qualify (for example, they owe more than $50,000, need a partial pay installment agreement, or have other complexities) — I call the IRS and set it up over the phone.

I call the IRS and set it up over the phone. Still better than the unpredictability of sending in form 9465.

Bonus Tip: I like to set up the installment agreement for the longest period available and advise the client to pay it off as quickly as possible.

This way, if they run into financial difficulty, they can always make the lower payment and avoid defaulting on the installment agreement.

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The Bottom Line

Just because a client owes money doesn’t mean it’s your job to fix it for free. This is advisory work. You’re using your knowledge, access, and resources to help them avoid penalties, stay compliant, and resolve their issues in the most efficient and client-friendly way possible.

As tax professionals, we’ve got to start treating this for what it is: a valuable, billable service.

In my practice, that includes transcript monitoring. It’s part of a flat-fee or subscription model, and clients are more than willing to pay for the peace of mind it brings.

If you’re not offering transcript monitoring, it’s an excellent value add — both for compliance and client confidence. I use Tax Help Software (THS) to do this in my firm, and I’ve got a full review of it coming soon.

So in short? Skip Form 9465.
Take the faster route. Deliver better service.
And don’t leave money on the table.

💬 Got Questions?

If you’ve got questions about installment agreements, the IRS Tax Pro Account, or how to build advisory services into your practice, I’d love to hear from you.

Leave a comment below or message me directly.

And if you found this helpful, feel free to share it with a colleague who’s still using Form 9465.

For my paid subscribers, below is my detailed checklist for setting up an IRS installment agreement — the exact process I use in my practice. Want to become a paid subscriber? -