Request a payment plan directly through the IRS website, by phone, or by mail
You can set up an IRS payment plan in three ways: online through IRS.gov, by calling the IRS at 1-800-829-1040, or by mailing Form 9465 (Installment Agreement Request) to the address shown in your tax notice. The online route is fastest — you can complete it in minutes and get immediate confirmation. Phone requests take longer because you will need to verify your identity and answer questions about your tax history. Mail takes the longest, typically two to four weeks for processing.
Before you contact the IRS, have your Social Security number, the tax year(s) you owe for, and the total amount you owe ready. If you received a notice from the IRS, have that in front of you — it contains the amount due and often a deadline for response. The IRS will not set up a plan for you if you have unfiled tax returns from prior years, so file those first if that applies to you.
Key Takeaways
- The IRS offers three types of payment plans: short-term (120 days or fewer), standard installment agreements (typically five to six years), and streamlined agreements that require less paperwork and lower setup fees.
- Online setup through IRS.gov is the fastest method and works for most people; you will get a confirmation number immediately and can begin payments within days.
- Setup fees range from $31 to $225 depending on the plan type and whether you pay by direct debit; direct debit lowers the fee and is the IRS's preferred method.
- Once approved, you must make monthly payments on time; missing a payment can terminate the plan and trigger collection action.
- You can modify or cancel your plan later if your financial situation changes, but you should contact the IRS before missing a payment.
The three types of payment plans and which one fits your situation
Short-term payment plans are for people who can pay off what they owe within 120 days. There is no setup fee, and you do not have to file Form 9465. You simply contact the IRS and tell them when you can pay. This works if you are expecting a bonus, a refund, or money from another source soon.
Streamlined installment agreements are for people who owe $50,000 or less in combined taxes, penalties, and interest. The setup fee is lower ($31 if you pay by direct debit, $225 if you do not), and the paperwork is minimal — you do not need to provide detailed financial information. The plan typically runs for 72 months (six years), but you can pay faster if you want to. Most people use this route because it is the simplest.
Standard installment agreements are for people who owe more than $50,000 or who need a longer payment period. The setup fee is higher ($31 to $225 depending on payment method), and you will need to provide financial information on Form 433-F or Form 433-B (if you are self-employed). The IRS uses this information to calculate a monthly payment you can actually afford. These agreements can run for ten years or longer.
Setting up a payment plan online through IRS.gov
Go to IRS.gov and search for "Online Payment Agreement." You will land on a page that lets you start the process immediately. You will need your Social Security number, date of birth, and the tax year(s) you owe for. The system will pull up your account and show you the exact amount due, including penalties and interest calculated to that day.
The online system will ask you to choose a payment amount and a due date each month. If you choose to pay by direct debit (automatic withdrawal from your bank account), the setup fee is $31 for most plans. If you choose to pay by check or money order, the fee is $225. Direct debit is faster and cheaper, and the IRS processes it more reliably.
Once you submit, you will receive a confirmation number on screen. Write it down or take a screenshot. The IRS will send you a formal agreement letter by mail within two weeks. You do not need to wait for the letter to start making payments — you can begin on the date you chose as soon as the next business day.
Requesting a payment plan by phone or mail
Call 1-800-829-1040 during business hours (Monday through Friday, 7 a.m. to 7 p.m. your local time). Have your Social Security number, the tax year(s) you owe for, and your most recent tax return in front of you. The representative will verify your identity, review your account, and discuss payment options with you. They will tell you the total amount due and calculate a monthly payment based on what you say you can afford.
If you prefer to mail your request, complete Form 9465 and send it with a copy of your tax notice to the address shown in that notice. Include a check or money order for the setup fee ($31 to $225) if you want to pay by check or money order; if you want to pay by direct debit, include a voided check or bank account information. Mail typically takes two to four weeks to process, and you will receive a confirmation letter by mail.
Phone requests can take 30 minutes or longer if the IRS is busy. If you cannot reach someone, try calling early in the morning or late in the week, when wait times are usually shorter. You can also use the IRS's callback service — provide your phone number and the IRS will call you back when a representative is available, so you do not have to hold.
What happens after your payment plan is approved
The IRS will send you a formal agreement letter that states the monthly payment amount, the due date, and the total number of payments. Keep this letter with your tax records. If you set up direct debit, the IRS will begin withdrawing money from your bank account on the date you chose each month. If you chose to pay by check or money order, you will need to send a payment by that date each month.
Interest and penalties continue to accrue on the unpaid balance while you are on the plan. This means your monthly payment covers part of the principal (the original tax you owe) and part of the interest and penalties. The longer your plan runs, the more interest you will pay overall. If you can pay faster, do so — any extra payment goes directly to reducing what you owe.
The IRS will apply each payment to your account automatically. You do not need to contact them or provide any additional paperwork as long as you make your payments on time. If you miss a payment, the IRS will send you a notice. If you miss a payment by more than a few days, the IRS may terminate the plan and begin collection action.
Modifying or canceling your payment plan
If your financial situation changes and you need to lower your monthly payment, contact the IRS and request a modification. You can do this online, by phone, or by mail using Form 9465. The IRS will recalculate your payment based on your current situation. Lowering your payment will extend the length of your plan, which means you will pay more interest overall, but it may be necessary if you cannot afford the current amount.
If your financial situation improves and you want to pay off the plan faster, you can increase your monthly payment or make lump-sum payments at any time without penalty. Simply include a note with your payment stating that the extra amount should go toward the principal balance.
If you want to cancel the plan entirely, contact the IRS in writing or by phone. Once the plan is canceled, any remaining balance becomes due immediately, and the IRS may begin collection action if you do not pay. Do not cancel a plan unless you have another way to pay the full amount or unless you have a specific reason to do so.
What to do if the IRS rejects your payment plan request
The IRS may reject your request if you have unfiled tax returns from prior years, if you did not include required financial information, or if you owe more than the limit for a streamlined agreement and did not provide enough detail about your finances. If your request is rejected, the IRS will send you a letter explaining why.
If you have unfiled returns, file them first — the IRS will not set up a plan until you do. If you did not provide enough financial information, complete Form 433-F (short form) or Form 433-B (if self-employed) and resubmit your request. If you owe a very large amount and the IRS believes you can afford a higher payment, you may need to negotiate with a revenue officer or consider an offer in compromise (a settlement for less than you owe).
If you believe the IRS made an error or if you disagree with their decision, you can request an appeal through the IRS Office of Appeals. This process takes time, so continue making payments on any existing plan while you appeal.
Frequently Asked Questions
Can I set up a payment plan if I owe penalties and interest on top of the tax?
Yes. The payment plan covers the original tax, penalties, and interest all together. Interest and penalties continue to accrue on the unpaid balance while you are on the plan, so the longer the plan runs, the more you will owe in total. Paying faster reduces the total interest you pay.
What if I cannot afford the monthly payment the IRS calculated?
Contact the IRS and request a modification. You can lower your monthly payment, which will extend the length of your plan. The IRS will work with you to find a payment amount that fits your budget, though they may ask for financial information to verify your situation.
Do I have to pay the setup fee upfront?
Yes, the setup fee ($31 to $225) is due when you request the plan. If you pay by direct debit, the fee is lower. You can include the fee with your first payment or pay it separately — the IRS will tell you how to handle it when you set up the plan.
What happens if I miss a payment?
The IRS will send you a notice. If you miss a payment by more than a few days, the IRS may terminate the plan and begin collection action, including wage garnishment or bank levies. Contact the IRS immediately if you know you will miss a payment — they may be willing to work with you if you communicate before the deadline.
Can I pay off my plan early without penalty?
Yes. You can pay more than your monthly payment at any time, and there is no penalty for paying early. Any extra payment goes directly toward reducing your balance. Paying early saves you money on interest.