Federal Payroll Deduction Agreement

Payroll Deduction Agreement
Form 2159 (Rev. 5-2020)
Form

Department of the Treasury — Internal Revenue Service

2159

Payroll Deduction Agreement

(May 2020)

(See Instructions on the back of this page.)

TO: (Employer name and address)

Regarding: (Taxpayer name and address)

Contact person’s name

Telephone (Include area code)

Social security or employer identification number
(Taxpayer)

EMPLOYER — See the instructions on the back of Part 2. The taxpayer identified above
on the right named you as an employer. Please read and sign the following statement to
agree to withhold amount(s) from the taxpayer’s (employee’s) wages or salary to apply to
taxes owed.
I agree to participate in this payroll deduction agreement and will withhold the amount
shown below from each wage or salary payment due this employee. I will send the money
to the Internal Revenue Service every: (Check one box.)
WEEK

TWO WEEKS

MONTH

Debit Payments Self-Identifier
If you are unable to make electronic payments through a debit instrument
(debit payments) by entering into a direct debit installment agreement, please
check the box below:

I am unable to make debit payments
Note: Not checking this box indicates that you are able but choosing not to
make debit payments. See Instructions to Taxpayer below for more details.

OTHER (Specify)

Date by which payments will be sent

For assistance, call: 1-800-829-0115 (Business) or
. 1-800-829-8374 (Individual – Self-Employed/Business Owners), or
1-800-829-0922 (Individuals – Wage Earners)

beginning on

Signed:
Title:

(Spouse, last four digits)

Or write:

Campus

Date:

Kinds of taxes (Form numbers)

(City, State, and ZIP Code)

Amount owed as of

Tax periods

, plus all penalties and interest provided by law.

$
I am paid every (Check one):

WEEK

I agree to have $

TWO WEEKS

MONTH

OTHER (Specify)

deducted from my wage or salary payments beginning

and paid by the employer to the IRS until the total

liability is paid in full. I also agree and authorize this deduction to be increased or decreased as follows:
Date of increase (or decrease)

Amount of increase (or decrease)

New installment payment amount

Terms of this agreement—By completing and submitting this agreement, you (the taxpayer) agree to the following terms:
• You will make each payment so that we (IRS) receive it by the due date stated on the
front of this form. If you cannot make a scheduled payment or accrue an additional
liability, contact us immediately.

• We will apply all payments on this agreement in the best interests of the United States.
Generally, we will apply the payment to the oldest collection statute, which is normally
the oldest tax year or tax period.

• This agreement is based on your current financial condition. We may modify or terminate
the agreement if our information shows that your ability to pay has significantly changed.
You must provide updated financial information when requested.

• We can terminate your installment agreement if: You do not make installment
payments as agreed, you do not pay any other federal tax debt when due, or you do not
provide financial information when requested.

• While this agreement is in effect, you must file all federal tax returns and pay any
(federal) taxes you owe on time.

• If we terminate your agreement, we may collect the entire amount you owe by levy on
your income, bank accounts or other assets, or by seizing your property. You will receive
a notice from us prior to termination of your agreement. EXCEPTION: We cannot collect
the individual shared responsibility payment under the Affordable Care Act by levy on
your income or seizure.

• We will apply your federal tax refunds or overpayments (if any) to the amount you owe
until it is fully paid, including any shared responsibility payment under the Affordable
Care Act.
• You must pay a $225 user fee, which we have authority to deduct from your first payment
(s). You may be eligible for a reduced user fee of $43 that may be waived or reimbursed
if certain conditions are met. See Form 13844 for qualifications and instructions.
• If you default on your installment agreement and we terminate the agreement, you must
pay a $89 reinstatement fee if we reinstate the agreement. You may be eligible for a
reduced user fee of $43 that may be waived or reimbursed if certain conditions are met.
See Form 13844 for qualifications and instructions. We have the authority to deduct this
fee from your first payment(s) after the agreement is reinstated. If reinstated, you agree
to the terms of this agreement as stated herein.

• We may terminate this agreement at any time if we find that collection of the tax is in
jeopardy.
• This agreement may require managerial approval. We'll notify you when we approve or
don’t approve the agreement.
• We may file a Notice of Federal Tax lien if one has not been filed previously which may
negatively impact your credit rating, but we will not file a Notice of Federal Tax Lien on an
individual shared responsibility payment under the Affordable Care Act.
• By signing and submitting this form, you authorize the IRS to contact third parties and to
disclose your tax information to third parties in order to process and administer this
agreement over its duration.

Additional terms (To be completed by IRS)
Title (If Corporate Officer or Partner)

Your signature

Date
Date

Spouse’s signature (If a joint liability)

FOR IRS
USE ONLY:

AGREEMENT LOCATOR NUMBER:
Check the appropriate boxes:
RSI “1” no further review

Originator’s ID #:

Originator Code:

Name:

Title:

AI “0” Not a PPIA

RSI “5” PPIA IMF 2-year review

AI “1” Field Asset PPIA

RSI “6” PPIA BMF 2-year review

AI “2” All other PPIAs

A NOTICE OF FEDERAL TAX LIEN (Check one box.)
HAS ALREADY BEEN FILED
WILL BE FILED IMMEDIATELY

Agreement Review Cycle:
Earliest CSED:
Check box if pre-assessed modules included

WILL BE FILED WHEN TAX IS ASSESSED
MAY BE FILED IF THIS AGREEMENT DEFAULTS

Agreement examined or approved by (Signature, title, function)

Part 1 — Acknowledgement Copy (Return to IRS)

Date

Catalog Number 21475H

Reset Form Fields

www.irs.gov

Form 2159 (Rev. 5-2020)

Form

Department of the Treasury — Internal Revenue Service

2159

Payroll Deduction Agreement

(May 2020)

(See Instructions on the back of this page.)

TO: (Employer name and address)

Regarding: (Taxpayer name and address)

Contact person’s name

Telephone (Include area code)

Social security or employer identification number
(Taxpayer)

EMPLOYER — See the instructions on the back of Part 2. The taxpayer identified above
on the right named you as an employer. Please read and sign the following statement to
agree to withhold amount(s) from the taxpayer’s (employee’s) wages or salary to apply to
taxes owed.
I agree to participate in this payroll deduction agreement and will withhold the amount
shown below from each wage or salary payment due this employee. I will send the money
to the Internal Revenue Service every: (Check one box.)
WEEK

TWO WEEKS

MONTH

Debit Payments Self-Identifier
If you are unable to make electronic payments through a debit instrument
(debit payments) by entering into a direct debit installment agreement, please
check the box below:

I am unable to make debit payments
Note: Not checking this box indicates that you are able but choosing not to
make debit payments. See Instructions to Taxpayer below for more details.

OTHER (Specify)

Date by which payments will be sent

For assistance, call: 1-800-829-0115 (Business) or
. 1-800-829-8374 (Individual – Self-Employed/Business Owners), or
1-800-829-0922 (Individuals – Wage Earners)

beginning on

Signed:
Title:

(Spouse, last four digits)

Or write:

Campus

Date:

Kinds of taxes (Form numbers)

(City, State, and ZIP Code)

Amount owed as of

Tax periods

, plus all penalties and interest provided by law.

$
I am paid every (Check one):

WEEK

I agree to have $

TWO WEEKS

MONTH

OTHER (Specify)

deducted from my wage or salary payments beginning

and paid by the employer to the IRS until the total

liability is paid in full. I also agree and authorize this deduction to be increased or decreased as follows:
Date of increase (or decrease)

Amount of increase (or decrease)

New installment payment amount

Terms of this agreement—By completing and submitting this agreement, you (the taxpayer) agree to the following terms:
• You will make each payment so that we (IRS) receive it by the due date stated on the
front of this form. If you cannot make a scheduled payment or accrue an additional
liability, contact us immediately.

• We will apply all payments on this agreement in the best interests of the United States.
Generally, we will apply the payment to the oldest collection statute, which is normally
the oldest tax year or tax period.

• This agreement is based on your current financial condition. We may modify or terminate
the agreement if our information shows that your ability to pay has significantly changed.
You must provide updated financial information when requested.

• We can terminate your installment agreement if: You do not make installment
payments as agreed, you do not pay any other federal tax debt when due, or you do not
provide financial information when requested.

• While this agreement is in effect, you must file all federal tax returns and pay any
(federal) taxes you owe on time.

• If we terminate your agreement, we may collect the entire amount you owe by levy on
your income, bank accounts or other assets, or by seizing your property. You will receive
a notice from us prior to termination of your agreement. EXCEPTION: We cannot collect
the individual shared responsibility payment under the Affordable Care Act by levy on
your income or seizure.

• We will apply your federal tax refunds or overpayments (if any) to the amount you owe
until it is fully paid, including any shared responsibility payment under the Affordable
Care Act.
• You must pay a $225 user fee, which we have authority to deduct from your first payment
(s). You may be eligible for a reduced user fee of $43 that may be waived or reimbursed
if certain conditions are met. See Form 13844 for qualifications and instructions.
• If you default on your installment agreement and we terminate the agreement, you must
pay a $89 reinstatement fee if we reinstate the agreement. You may be eligible for a
reduced user fee of $43 that may be waived or reimbursed if certain conditions are met.
See Form 13844 for qualifications and instructions. We have the authority to deduct this
fee from your first payment(s) after the agreement is reinstated. If reinstated, you agree
to the terms of this agreement as stated herein.

• We may terminate this agreement at any time if we find that collection of the tax is in
jeopardy.
• This agreement may require managerial approval. We'll notify you when we approve or
don’t approve the agreement.
• We may file a Notice of Federal Tax lien if one has not been filed previously which may
negatively impact your credit rating, but we will not file a Notice of Federal Tax Lien on an
individual shared responsibility payment under the Affordable Care Act.
• By signing and submitting this form, you authorize the IRS to contact third parties and to
disclose your tax information to third parties in order to process and administer this
agreement over its duration.

Additional terms (To be completed by IRS)
Title (If Corporate Officer or Partner)

Your signature

Date
Date

Spouse’s signature (If a joint liability)

FOR IRS
USE ONLY:

AGREEMENT LOCATOR NUMBER:
Check the appropriate boxes:
RSI “1” no further review

Originator’s ID #:

Originator Code:

Name:

Title:

AI “0” Not a PPIA

RSI “5” PPIA IMF 2-year review

AI “1” Field Asset PPIA

RSI “6” PPIA BMF 2-year review

AI “2” All other PPIAs

A NOTICE OF FEDERAL TAX LIEN (Check one box.)
HAS ALREADY BEEN FILED
WILL BE FILED IMMEDIATELY

Agreement Review Cycle:
Earliest CSED:
Check box if pre-assessed modules included

WILL BE FILED WHEN TAX IS ASSESSED
MAY BE FILED IF THIS AGREEMENT DEFAULTS

Agreement examined or approved by (Signature, title, function)

Part 2

—

Employer’s Copy

Catalog Number 21475H

Date

www.irs.gov

Form 2159 (Rev. 5-2020)

INSTRUCTIONS TO EMPLOYER
This payroll deduction agreement is subject to your approval. If you agree to participate, please complete the spaces provided
under the employer section on the front of this form.

WHAT YOU SHOULD DO
• Enter the name and telephone number of a contact person. (This will allow us to contact you if your employee’s liability is
satisfied ahead of time.)
• Indicate when you will forward payments to IRS.
• Sign and date the form.
• After you and your employee have completed and signed all parts of the form, please return the parts of the form which
were requested on the letter the employee received with the form. Use the IRS address on the letter the employee
received with the form or the address shown on the front of the form.

HOW TO MAKE PAYMENTS
Please deduct the amount your employee agreed to have deducted from each wage or salary payment due the employee.
Make your check payable to the “United States Treasury.” To insure proper credit, please write your employee’s name
and social security number on each payment.
Send the money to the IRS mailing address printed on the letter that came with the agreement. Your employee should
give you a copy of this letter. If there is no letter, use the IRS address shown on the front of the form.
Note: The amount of the liability shown on the form may not include all penalties and interest provided by law. Please continue to
make payments unless IRS notifies you to stop.
If you need assistance, please call the telephone number on the letter that came with the agreement or write to the address shown
on the letter. If there’s no letter, please call the appropriate telephone number below or write IRS at the address shown on the
front of the form.
For assistance, call: 1-800-829-0115 (Business), or
1-800-829-8374 (Individual – Self-Employed/Business Owners), or
1-800-829-0922 (Individuals – Wage Earners)

THANK YOU FOR YOUR COOPERATION

Catalog Number 21475H

www.irs.gov

Form 2159 (Rev. 5-2020)

Form

Department of the Treasury — Internal Revenue Service

2159

Payroll Deduction Agreement

(May 2020)

(See Instructions on the back of this page.)

TO: (Employer name and address)

Regarding: (Taxpayer name and address)

Contact person’s name

Telephone (Include area code)

Social security or employer identification number
(Taxpayer)

EMPLOYER — See the instructions on the back of Part 2. The taxpayer identified above
on the right named you as an employer. Please read and sign the following statement to
agree to withhold amount(s) from the taxpayer’s (employee’s) wages or salary to apply to
taxes owed.
I agree to participate in this payroll deduction agreement and will withhold the amount
shown below from each wage or salary payment due this employee. I will send the money
to the Internal Revenue Service every: (Check one box.)
WEEK

TWO WEEKS

MONTH

Debit Payments Self-Identifier
If you are unable to make electronic payments through a debit instrument
(debit payments) by entering into a direct debit installment agreement, please
check the box below:

I am unable to make debit payments
Note: Not checking this box indicates that you are able but choosing not to
make debit payments. See Instructions to Taxpayer below for more details.

OTHER (Specify)

Date by which payments will be sent

For assistance, call: 1-800-829-0115 (Business) or
. 1-800-829-8374 (Individual – Self-Employed/Business Owners), or
1-800-829-0922 (Individuals – Wage Earners)

beginning on

Signed:
Title:

(Spouse, last four digits)

Or write:

Campus

Date:

Kinds of taxes (Form numbers)

(City, State, and ZIP Code)

Amount owed as of

Tax periods

, plus all penalties and interest provided by law.

$
I am paid every (Check one):

WEEK

I agree to have $

TWO WEEKS

MONTH

OTHER (Specify)

deducted from my wage or salary payments beginning

and paid by the employer to the IRS until the total

liability is paid in full. I also agree and authorize this deduction to be increased or decreased as follows:
Date of increase (or decrease)

Amount of increase (or decrease)

New installment payment amount

Terms of this agreement—By completing and submitting this agreement, you (the taxpayer) agree to the following terms:
• You will make each payment so that we (IRS) receive it by the due date stated on the
front of this form. If you cannot make a scheduled payment or accrue an additional
liability, contact us immediately.

• We will apply all payments on this agreement in the best interests of the United States.
Generally, we will apply the payment to the oldest collection statute, which is normally
the oldest tax year or tax period.

• This agreement is based on your current financial condition. We may modify or terminate
the agreement if our information shows that your ability to pay has significantly changed.
You must provide updated financial information when requested.

• We can terminate your installment agreement if: You do not make installment
payments as agreed, you do not pay any other federal tax debt when due, or you do not
provide financial information when requested.

• While this agreement is in effect, you must file all federal tax returns and pay any
(federal) taxes you owe on time.

• If we terminate your agreement, we may collect the entire amount you owe by levy on
your income, bank accounts or other assets, or by seizing your property. You will receive
a notice from us prior to termination of your agreement. EXCEPTION: We cannot collect
the individual shared responsibility payment under the Affordable Care Act by levy on
your income or seizure.

• We will apply your federal tax refunds or overpayments (if any) to the amount you owe
until it is fully paid, including any shared responsibility payment under the Affordable
Care Act.
• You must pay a $225 user fee, which we have authority to deduct from your first payment
(s). You may be eligible for a reduced user fee of $43 that may be waived or reimbursed
if certain conditions are met. See Form 13844 for qualifications and instructions.
• If you default on your installment agreement and we terminate the agreement, you must
pay a $89 reinstatement fee if we reinstate the agreement. You may be eligible for a
reduced user fee of $43 that may be waived or reimbursed if certain conditions are met.
See Form 13844 for qualifications and instructions. We have the authority to deduct this
fee from your first payment(s) after the agreement is reinstated. If reinstated, you agree
to the terms of this agreement as stated herein.

• We may terminate this agreement at any time if we find that collection of the tax is in
jeopardy.
• This agreement may require managerial approval. We'll notify you when we approve or
don’t approve the agreement.
• We may file a Notice of Federal Tax lien if one has not been filed previously which may
negatively impact your credit rating, but we will not file a Notice of Federal Tax Lien on an
individual shared responsibility payment under the Affordable Care Act.
• By signing and submitting this form, you authorize the IRS to contact third parties and to
disclose your tax information to third parties in order to process and administer this
agreement over its duration.

Additional terms (To be completed by IRS)
Title (If Corporate Officer or Partner)

Your signature

Date
Date

Spouse’s signature (If a joint liability)

FOR IRS
USE ONLY:

AGREEMENT LOCATOR NUMBER:
Check the appropriate boxes:
RSI “1” no further review

Originator’s ID #:

Originator Code:

Name:

Title:

AI “0” Not a PPIA

RSI “5” PPIA IMF 2-year review

AI “1” Field Asset PPIA

RSI “6” PPIA BMF 2-year review

AI “2” All other PPIAs

A NOTICE OF FEDERAL TAX LIEN (Check one box.)
HAS ALREADY BEEN FILED
WILL BE FILED IMMEDIATELY

Agreement Review Cycle:
Earliest CSED:
Check box if pre-assessed modules included

WILL BE FILED WHEN TAX IS ASSESSED
MAY BE FILED IF THIS AGREEMENT DEFAULTS

Agreement examined or approved by (Signature, title, function)

Part 3

—

Taxpayer’s Copy

Catalog Number 21475H

Date

www.irs.gov

Form 2159 (Rev. 5-2020)

INSTRUCTIONS TO TAXPAYER
If not already completed by an IRS employee, please fill in the information in the spaces provided on the front of this form for the
following items:
• Your employer’s name and address
• Your name(s) (plus spouse’s name if the amount owed is for a joint return) and current address.
• Your social security number or employer identification number. (Use the number that appears on the notice(s) you
received.) Also, enter the last four digits of your spouse’s social security number if this is a joint liability.
• If you are a low-income taxpayer, you would qualify for the waiver of your installment agreement fees if you agreed to
make electronic payments through a debit instrument (debit payments) by entering into a direct debit installment
agreement. This payroll deduction agreement is not a direct debit installment agreement and you are not making debit
payments under this agreement. However, if you indicated in the Debit Payments Self-Identifier section of this agreement
that you are unable to make debit payments by entering into a direct debit installment agreement, then your installment
agreement fees will be reimbursed upon completion of your agreement. Low-income taxpayers, for installment agreement
purposes, are individuals with adjusted gross incomes, as determined for the most recent year for which such information
is available, at or below 250% of the criteria established by the poverty guidelines updated annually by the U.S.
Department of Health and Human Services.
• The kind of taxes you owe (form numbers) and the tax periods
• The amount you owe as of the date you spoke to IRS
• When you are paid
• The amount you agreed to have deducted from your pay when you spoke to IRS
• The date the deduction is to begin
• The amount of any increase or decrease in the deduction amount, if you agreed to this with IRS; otherwise, leave BLANK
After you complete, sign (along with your spouse if this is a joint liability), and date this agreement form, give it to your participating
employer. If you received the form by mail, please give the employer a copy of the letter that came with it.
Your employer should mark the payment frequency on the form and sign it. Then, your employer should return the parts of the
form which were requested on your letter or return Part 1 of the form to the address shown in the “For assistance” box on the front
of the form.
If you need assistance, please call the appropriate telephone number below or write IRS at the address shown on the form.
However, if you received this agreement by mail, please call the telephone number on the letter that came with it or write IRS at
the address shown on the letter.
For assistance, call: 1-800-829-0115 (Business), or
1-800-829-8374 (Individual – Self-Employed/Business Owners), or
1-800-829-0922 (Individuals – Wage Earners)
Note: This agreement will not affect your liability (if any) for backup withholding under Public Law 98-67, the Interest and
Dividend Compliance Act of 1983.

Catalog Number 21475H

www.irs.gov

Form 2159 (Rev. 5-2020)