How to set up a payment plan with the IRS online

You can set up an IRS payment plan online through the IRS website without calling or visiting an office. The process takes about 15 minutes if you have your tax return information and bank account details ready. The IRS offers two main online routes: the Online Payment Agreement tool for most taxpayers, and the Short-Term Extension if you need just 120 days to pay in full.

The Online Payment Agreement tool lets you choose between a monthly payment amount and a payment schedule, see the setup fee upfront, and get immediate confirmation. You do not need to wait for approval — the plan takes effect as soon as you complete the steps. The IRS will send you a notice by mail within two weeks confirming the terms.

Key Takeaways

  • The IRS Online Payment Agreement tool at irs.gov lets you set up a monthly plan without calling, and you get instant confirmation of your agreement.
  • You will need your Social Security number or ITIN, the tax year and amount owed, and a bank account for automatic withdrawal — which is required for online plans.
  • Setup fees range from $31 to $225 depending on your payment method and income, and the IRS will tell you the exact fee before you finish.
  • Monthly payments must be at least $25, and the plan must be paid off within 72 months, though you can pay faster without penalty.
  • If you cannot pay within 72 months or need more time to decide, you can request a Short-Term Extension for 120 days at no cost.

What you need before you start

Gather these items before you log in to the IRS website. You will need your Social Security number or ITIN, the tax year for which you owe money, and the exact amount owed (this appears on your notice from the IRS). Have your most recent tax return handy so you can verify your filing status and income if prompted.

You will also need a valid bank account — checking or savings — because the IRS requires automatic withdrawal from your account for any online payment plan. The bank account must be in your name. If you do not have a bank account, you can call the IRS at 1-800-829-1040 to set up a plan by phone, though this takes longer.

Make sure you know your monthly budget before you start. The IRS will ask you to propose a monthly payment amount. The minimum is $25 per month, but the higher your payment, the less interest and penalties you will owe overall. If you are unsure what you can afford, you can estimate and adjust later by calling the IRS.

Step-by-step: Using the Online Payment Agreement tool

Step 1: Go to the IRS Online Payment Agreement page. Visit irs.gov and search for "Online Payment Agreement" or go directly to the payment agreement section under the "Payments" tab. You will see a button that says "Set Up a Payment Plan." Click it to begin.

Step 2: Enter your personal information and verify your identity. The IRS will ask for your Social Security number or ITIN, date of birth, and filing status. It will then ask you to verify your identity by answering questions based on your tax history or by providing information from a recent tax return. This step usually takes 2 to 3 minutes.

Step 3: Review your tax debt and choose your payment terms. The IRS will show you the total amount owed, including any penalties and interest accrued to date. You will then enter your proposed monthly payment amount. The tool will calculate how many months it will take to pay off the debt at that rate. If the payoff period exceeds 72 months, the IRS will reject that amount and ask you to increase it.

Step 4: Confirm your bank account and review the setup fee. Provide your bank account number and routing number for automatic withdrawal. The IRS will show you the setup fee — this ranges from $31 if your income is below a certain threshold (which varies yearly) to $225 for standard setups. Review the full agreement, including the payment amount, due date each month, and total interest and penalties, then click "Agree and Submit."

You will receive a confirmation number on screen immediately. Write it down or take a screenshot. The IRS will mail you an official notice within 10 to 14 days. Your first payment will be withdrawn on the date you selected, usually 21 to 28 days after you submit.

Setup fees and what they cover

The IRS charges a setup fee to establish your payment plan online. The fee depends on your income and the type of plan. If your income is below the current threshold (adjusted yearly), you may pay $31 instead of the standard $225. The IRS will show you the exact fee before you submit, so there are no surprises.

The setup fee is added to your total debt and included in your monthly payment calculation. You cannot avoid it by paying in full immediately — if you are setting up a plan, you will owe it. However, if you later pay off the plan early, you do not owe any additional fees or penalties for early payment.

If you cannot afford the setup fee, you can request a fee waiver by calling the IRS at 1-800-829-1040. The IRS considers your income and ability to pay. Waivers are not common, but they are possible if you demonstrate financial hardship.

Payment timing and automatic withdrawal

Once your plan is approved, the IRS will withdraw your monthly payment automatically from your bank account on the date you chose during setup. Most people select the 15th or the last day of the month. The withdrawal usually happens within 2 to 3 business days of that date.

Make sure your bank account has enough funds on the withdrawal date. If the withdrawal fails, the IRS will attempt it again, and you may face a failed payment fee from your bank. If you miss a payment, contact the IRS immediately at 1-800-829-1040 to reschedule or modify your plan.

You can change your payment amount or due date at any time by logging back into the Online Payment Agreement tool or by calling the IRS. If you want to pay off the plan early, you can make extra payments without penalty. Send extra payments to the address on your IRS notice, or pay online through irs.gov and note that it is for your account.

When the online tool will not work for you

The Online Payment Agreement tool is available only if you owe $50,000 or less in combined tax, penalties, and interest. If you owe more than $50,000, you must call the IRS at 1-800-829-1040 or work with a tax professional to set up an installment agreement by phone.

You also cannot use the online tool if you have an existing payment plan with the IRS. If you want to modify your current plan, log in to your IRS account or call 1-800-829-1040. The online tool is not available if you are a business owner with a business tax debt — only individual income tax debts can be set up online.

If you need more than 72 months to pay, or if you want to delay your first payment beyond 28 days, you will need to call the IRS. The same applies if you want to request a fee waiver or if you have questions about your specific situation.

Tracking your plan and staying current

Once your plan is active, you can track your balance and payment history by logging into your IRS account at irs.gov. Create an account if you do not have one already — you will need your Social Security number, date of birth, and filing status. Your account shows your current balance, the date of your next payment, and a history of all payments made.

The IRS will mail you a notice each year showing your balance and the payments made that year. Keep these notices for your records. If you have questions about your plan or need to make changes, you can log into your account and use the "Modify Your Payment Plan" option, or call 1-800-829-1040.

If your financial situation changes and you can no longer afford your monthly payment, contact the IRS as soon as possible. You can request a temporary pause, a lower payment amount, or a different payment schedule. The sooner you contact them, the more options you will have.

Frequently Asked Questions

Can I set up a payment plan if I still owe from a previous year?

Yes. If you owe taxes from multiple years, the Online Payment Agreement tool will combine all of them into one plan. You will make one monthly payment that covers all years owed. The IRS will apply your payment to the oldest debt first.

What happens if I cannot make a payment?

Contact the IRS immediately at 1-800-829-1040. Missing a payment does not automatically cancel your plan, but it can trigger penalties and interest. The IRS may work with you to adjust your payment amount or reschedule your due date if you explain your situation.

Can I pay off my plan early without a penalty?

Yes. You can pay off your plan in full at any time without owing extra fees or penalties. Send the payment to the address on your IRS notice, or pay online at irs.gov. There is no advantage to waiting — paying early saves you interest.

Do I need a tax professional to set up a payment plan online?

No. The online tool is designed for individual taxpayers to use on their own. However, if you owe more than $50,000, have a complex tax situation, or want professional guidance, a tax professional or tax attorney can help you set up a plan by phone.

What if my bank account information changes after I set up the plan?

Log into your IRS account and update your bank account information in the payment plan section. You can also call 1-800-829-1040 to update it by phone. Make sure to update it before your next scheduled withdrawal to avoid a failed payment.