How to pay your IRS payment plan
You can pay an IRS payment plan through the IRS website, by phone, by mail, or through automatic bank withdrawals. The method you choose depends on whether you want to pay a single installment or set up recurring monthly payments. Most people use the IRS Direct Pay system or set up an automatic withdrawal from their bank account, since both are free and require no credit card.
The IRS accepts payments for installment agreements through multiple channels, and you do not need to contact the IRS separately each time you pay—once your plan is in place, you can make payments without calling or visiting a payment portal again if you choose automatic withdrawal.
Key Takeaways
- IRS Direct Pay and automatic bank withdrawal are both free methods and do not charge a setup fee, while credit card payments through approved vendors charge a processing fee of 1.87 to 2.35 percent.
- You can set up automatic monthly payments so money leaves your bank account on a date you choose each month, and you can change or cancel the arrangement anytime.
- If you pay by mail, send a check or money order with Form 9465-FS (the payment plan request form) to the IRS address for your state, and include your tax year and case number if you already have a payment plan.
- The IRS processes payments immediately through Direct Pay and automatic withdrawal, but mailed checks take 7 to 10 business days to post to your account.
- You can track your payment plan balance and payment history through your IRS online account or by calling the IRS at 1-800-829-1040.
Setting up automatic monthly payments from your bank account
Automatic withdrawal is the simplest way to pay a payment plan because the IRS pulls money from your checking or savings account on the same date each month. You choose the date between the 1st and 28th, and the IRS deducts your installment payment automatically. There is no fee for this method, and you can change the payment date or cancel the arrangement at any time by contacting the IRS.
To set up automatic withdrawal, you will need your bank routing number and account number. You can arrange this through the IRS website, by phone at 1-800-829-1040, or through a tax professional. Once the arrangement is in place, you do not need to do anything each month—the payment happens on its own. If your bank account changes or closes, contact the IRS immediately to update your banking information, or your payment will fail and you may owe a penalty.
The IRS typically reduces your monthly payment amount by $225 if you choose automatic withdrawal instead of other payment methods, though this reduction applies only to certain types of payment plans. Ask the IRS whether your plan qualifies when you set it up.
Paying through IRS Direct Pay on the IRS website
IRS Direct Pay lets you pay from your bank account one time or set up recurring payments through the IRS website at irs.gov/payments. You log in with your IRS online account credentials, enter the amount you want to pay, and choose your payment date. The payment posts to your account within one business day, and there is no fee.
Direct Pay works for both individual and business payment plans. You can schedule payments in advance—for example, you can set up all 12 of your monthly payments at once if you know your payment dates ahead of time. You will receive a confirmation number immediately after each payment, and you can view your payment history in your IRS online account.
If you do not have an IRS online account yet, you can create one at irs.gov using your Social Security number or Individual Taxpayer Identification Number, a valid email address, and a phone number. The account takes a few minutes to set up and gives you access to your tax records, payment history, and payment plan details.
Paying by credit or debit card through an approved vendor
The IRS does not accept credit or debit card payments directly, but three approved payment processors will accept them: PayPal, Worldpay, and Official Payments. Each charges a processing fee of 1.87 to 2.35 percent of the payment amount. For example, a $500 payment would cost $9.35 to $11.75 in fees.
You can find links to all three vendors on the IRS website at irs.gov/payments. Each vendor has its own interface, but the process is similar: you enter your payment amount, your tax information, and your card details. The payment posts within one to two business days. Use this method only if you have no access to a bank account or if you need to pay immediately and cannot wait for a mailed check to arrive.
Paying by mail with a check or money order
If you prefer to mail a payment, send a check or money order to the IRS address for your state. You can find the correct address on the IRS website or on your payment plan notice. Write your Social Security number, tax year, and case number (if you have one) on the check or money order itself.
Include Form 9465-FS with your payment if you are requesting a payment plan for the first time. If you already have a payment plan in place, you do not need the form—just send the check with a note that includes your name, Social Security number, tax year, and the amount you are paying. Mailed payments take 7 to 10 business days to post to your account, so plan ahead if you have a specific payment due date.
Do not send cash through the mail. The IRS will not process it, and you will have no proof of payment if it is lost.
What happens after you make a payment
Once the IRS receives your payment, it applies the money to your tax debt and updates your payment plan balance. You can check your balance and payment history through your IRS online account or by calling 1-800-829-1040. The IRS sends you a statement each year showing all payments made and your remaining balance.
If you miss a payment, the IRS will send you a notice. Most payment plans allow a grace period of a few days, but if you miss a payment by more than 30 days, the IRS may terminate your agreement and demand full payment of the remaining balance. If you know you will miss a payment, contact the IRS before the due date to request a temporary delay or to modify your payment amount.
Once you have paid off your tax debt in full, the IRS will send you a notice confirming that your payment plan is closed. Keep this notice for your records.
Changing or canceling your payment plan
You can modify your payment plan at any time by contacting the IRS. Common changes include increasing or decreasing your monthly payment amount, changing the payment date, or switching payment methods. Call 1-800-829-1040 or log into your IRS online account to make these changes.
If you want to pay off your debt early, you can do so without penalty. Simply pay more than your scheduled monthly amount, and the extra money will reduce your remaining balance. If you want to cancel your payment plan entirely and pay the full remaining balance at once, contact the IRS to confirm there are no additional fees or penalties.
Frequently Asked Questions
Can I pay my IRS payment plan with a prepaid debit card?
Yes, if the prepaid card is linked to a bank account and has a routing number and account number, you can use it for automatic withdrawal or IRS Direct Pay. If the card does not have banking details, you can use it as a credit card through one of the three approved vendors, but you will pay a processing fee of 1.87 to 2.35 percent.
What if I pay more than my scheduled monthly amount?
Extra payments reduce your remaining balance and shorten the length of your payment plan. The IRS applies the overpayment to your tax debt immediately. You do not need to notify the IRS—just make the larger payment through your normal method, and the system will process it correctly.
How long does it take for a payment to show up in my IRS account?
Direct Pay and automatic withdrawal post within one business day. Credit card payments through approved vendors take one to two business days. Mailed checks take 7 to 10 business days. You will receive a confirmation number or receipt for each payment, which you can use to track it if there is a delay.
Can I set up a payment plan payment through a tax professional or accountant?
Yes. A tax professional can help you set up automatic withdrawal or Direct Pay on your behalf, or they can submit Form 9465 (the payment plan request) with your payment. However, you will still need to make the actual payments yourself unless you give your tax professional power of attorney to act on your behalf.
What happens if my bank account is closed after I set up automatic withdrawal?
Your payment will fail, and the IRS will send you a notice. Contact the IRS immediately with your new banking information so they can retry the payment. If the payment fails twice, the IRS may terminate your payment plan and demand full payment of the remaining balance.