Call the IRS at 1-800-829-1040 to set up a payment plan over the phone
The IRS has a dedicated phone line for payment arrangements. 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, tax year, and the amount you owe ready before you call. The IRS representative will walk you through the options and can set up a plan on the spot.
Wait times are typically shorter early in the morning or late in the afternoon. If you reach a busy signal, the IRS system will offer to call you back at a time you choose rather than making you hold. This callback option usually means a wait of a few hours to a day, depending on call volume.
If you are calling about a business tax debt, use the same number but mention that you are a business owner. The representative may transfer you to a specialist who handles corporate or partnership accounts.
Key Takeaways
- Call 1-800-829-1040 Monday through Friday, 7 a.m. to 7 p.m. your local time, and have your Social Security number and tax year ready.
- The IRS can set up a payment plan during the call and will tell you the monthly amount and how long the plan will last.
- You will owe a setup fee (currently between $31 and $225 depending on the plan type and whether you pay by direct debit), which the IRS will add to your balance.
- If you cannot reach a representative by phone, you can set up a plan online through IRS.gov or by mail, though phone is fastest for immediate confirmation.
What information to have ready before you call
Gather these documents and details before dialing. You will need your Social Security number or employer identification number, the tax year of the debt (for example, 2023 or 2024), and the total amount you owe. If you have a notice from the IRS (usually a CP notice or a bill), have that in front of you—it contains the exact balance and any penalties or interest added since the original bill.
Have your current address and a phone number where the IRS can reach you if needed. If you want to set up automatic monthly payments from your bank account (which lowers your setup fee), have your bank account number and routing number available. The representative will ask whether you want to pay by direct debit, credit card, or check, so decide that before you call.
The three payment plan types the IRS offers by phone
The IRS offers three main arrangements when you call. A short-term extension gives you up to 180 days to pay in full without a formal payment plan—this has no setup fee and is the fastest option if you can pay the whole balance within six months. The IRS will send you a bill with a new due date.
An installment agreement is a formal payment plan where you pay a fixed amount each month over a longer period (typically 24 to 72 months, depending on what you owe). The setup fee ranges from $31 to $225. If you set up direct debit from your bank account, the fee is lower ($31 for most plans). If you pay by check or credit card, the fee is higher ($225 for most plans).
A currently not collectible status temporarily pauses collection if you are in severe financial hardship. You will not make payments, but interest and penalties continue to accrue. The IRS can restart collection efforts later when your situation improves. This is not a forgiveness—you still owe the full amount eventually.
What happens during the call
The representative will verify your identity by asking for your Social Security number and date of birth. They will then pull up your account and confirm the amount you owe, including any penalties and interest added since the original bill. They will ask about your income, expenses, and ability to pay to determine what monthly amount is realistic for you.
Based on your situation, they will propose a payment plan. For example, if you owe $5,000 and can afford $150 per month, they might offer a 36-month plan. You can negotiate—if the proposed amount is too high, say so, and they can extend the timeline or discuss other options. Once you agree, the representative will confirm the monthly payment amount, the due date each month, and the total number of payments.
The IRS will send you a written confirmation by mail within two weeks. Keep this letter—it is your proof of the agreement. Payments typically begin 30 days after the plan is set up, though the representative will tell you the exact start date.
Setup fees and how they are added to your balance
The setup fee is not a separate charge you pay upfront. Instead, the IRS adds it to your total balance, and you pay it off as part of your monthly installments. If you owe $3,000 and the setup fee is $225, your new balance becomes $3,225, divided across your monthly payments.
The fee amount depends on the payment method. Direct debit from your bank account costs $31. Paying by check, money order, or credit card costs $225. Some people choose to set up direct debit specifically to lower this fee. You can change your payment method later if needed, though the IRS may charge an additional fee for the change.
After the call: making your first payment and staying on track
Your first payment is due about 30 days after you set up the plan. The IRS will mail you a payment coupon or instructions on how to pay. You can pay online at IRS.gov, by phone at 1-800-829-1040, by mail, or through an approved payment processor. If you set up direct debit, the payment will come out of your bank account automatically each month on the date you agreed to.
Set a reminder for your payment due date each month. Missing a payment can cause the IRS to terminate the plan and resume collection action. If you miss a payment, contact the IRS immediately at 1-800-829-1040 to explain and ask about making it up. The IRS is usually willing to work with you if you communicate before the deadline.
If your financial situation changes and you can no longer afford the monthly amount, call the IRS again to modify the plan. They can lower the payment and extend the timeline, or move you to currently not collectible status temporarily.
When calling is not the best option
If you owe less than $2,500 and can pay it within 120 days, setting up a short-term extension online at IRS.gov is faster than calling and requires no setup fee. If you owe more than $50,000, the IRS may require you to submit a financial statement (Form 433-F) before approving a long-term plan, which takes longer than a phone call alone.
If you are unable to reach the IRS by phone after multiple attempts, you can set up a plan by mail by sending a written request to the IRS address on your bill, or you can use the online payment plan tool on IRS.gov. Both routes take longer—typically two to four weeks—but they work if the phone line is consistently busy.
Frequently Asked Questions
How long does it take to set up a payment plan on the phone?
The call itself usually takes 15 to 30 minutes. The IRS representative will confirm the plan before you hang up, and you will receive written confirmation by mail within two weeks. Your first payment is typically due about 30 days after the call.
Can I set up a payment plan if I have not filed my tax return yet?
No. You must file your return first. If you owe taxes, file as soon as you can, then call the IRS to set up the plan. If you need help filing, the IRS offers free filing assistance through VITA (Volunteer Income Tax Assistance) at IRS.gov.
What if I cannot afford the monthly payment the IRS proposes?
Tell the representative during the call. They can lower the monthly amount and extend the plan timeline, or they can place your account in currently not collectible status if you are in severe hardship. You can also call back later to modify the plan if your situation changes.
Will setting up a payment plan stop wage garnishment or bank levies?
Setting up a payment plan does not automatically stop existing collection actions. However, once the plan is approved and you begin making payments, the IRS typically stops garnishing wages or levying your bank account. If collection action is already underway, mention it during the call so the representative can note it on your account.
Can I pay off the plan early without a penalty?
Yes. You can pay off the full balance at any time without penalty. If you receive a bonus, tax refund, or inheritance, you can put it toward the plan to finish it faster. Just make sure the payment is applied to the right tax year and account.