Financial Glossary
Form 433-D (Installment Agreement)
Form 433-D is the IRS Installment Agreement form that documents the terms of a taxpayer's arrangement to pay an outstanding tax debt in monthly installments, typically through automatic direct debit from a bank account. It captures the payment amount, schedule, and banking details so the IRS can withdraw payments. It differs from the financial-disclosure 433 forms because it formalizes an already-approved payment plan rather than collecting net-worth information.
Problem & Application
Owner-operators who fall behind on a tax bill often arrange an installment agreement, and Form 433-D is what locks in the direct-debit terms. Where the completed form gets sent depends on the taxpayer's situation and the IRS notice or instructions received, so the mailing address should be verified against current IRS guidance rather than assumed. Setting up direct debit correctly avoids missed payments that can default the agreement.
In Short
Form 433-D turns an approved payment plan into an automated, documented arrangement with the IRS. Confirm the current submission instructions so the agreement takes effect without delay.