How to Set Up a Payment Plan With the IRS
The IRS has three ways to contact them about a payment plan, and the fastest route depends on how much you owe
If you owe federal income tax and cannot pay it all at once, you can contact the IRS to arrange a payment plan — a formal agreement that lets you pay in monthly installments instead of a lump sum. The IRS does not require you to call or visit an office; you can set up a plan online, by phone, or by mail. Which method works fastest depends on the amount you owe and whether you have already received a bill from the IRS.
The online route is usually quickest if you owe $50,000 or less and have a recent tax bill in hand. The phone line works if you prefer to speak with someone or if your situation is more complex. The mail route exists but takes weeks and is rarely the best choice unless you have no other way to reach the IRS.
Key Takeaways
- You can set up an IRS payment plan online at IRS.gov, by phone at 1-800-829-1040, or by mail using Form 9465.
- The online method is fastest for balances under $50,000 and requires your Social Security number, tax year, and the amount you owe.
- Short-term payment plans (120 days or fewer) have no setup fee; long-term plans charge a fee that varies by method, usually $31 to $225.
- The IRS will send you a notice confirming your plan; keep this document because it shows your landlord, creditor, or employer that you have an agreement in place.
- If your situation changes — you lose income or get a refund — you can modify or cancel your plan at any time.
Setting up a payment plan online at IRS.gov
The IRS Online Payment Agreement tool is available 24 hours a day and does not require you to call or mail anything. Go to IRS.gov, search for "Online Payment Agreement," and you will land on a page where you can enter your information and choose your monthly payment amount.
Before you start, have these items ready: your Social Security number, the tax year for which you owe, the amount you owe, and your bank account number (if you want to pay by electronic funds withdrawal, which is required for most online agreements). The tool will show you the monthly payment amount and the total interest and penalties you will pay over the life of the plan. You can accept or adjust the payment amount before you submit.
Once you submit, the IRS sends a confirmation notice to your address on file. This notice is your proof of the agreement. If you owe $50,000 or more, you cannot use the online tool; you must call or mail Form 9465 instead.
Calling the IRS payment plan line
The IRS phone number for payment plans is 1-800-829-1040. This line is open Monday through Friday, 7 a.m. to 7 p.m. in your local time zone. Wait times are often long, especially during tax season (January through April), so call early in the day or late in the week if you can.
When you call, have your Social Security number, the tax year you owe for, and the amount ready. A representative will discuss your income and expenses, help you decide on a monthly payment amount, and explain the fees. If you owe more than $50,000, the representative can still help you, but you may need to provide additional financial information.
The representative will set up the plan over the phone and send you a confirmation notice by mail. This process usually takes 5 to 10 business days from the time you call. If you want to pay by automatic bank withdrawal (which lowers your fee), the representative will collect your bank account and routing number during the call.
Mailing Form 9465 to the IRS
If you prefer not to call or use the online tool, you can mail Form 9465 (Installment Agreement Request) to the IRS address shown in the form instructions. You will also need to include a copy of your most recent tax return and a statement of your current income and expenses if the IRS requests it.
Mail takes 2 to 4 weeks to reach the IRS, and processing takes another 2 to 4 weeks. The IRS will send you a confirmation notice when your plan is approved. This method is slower than calling or using the online tool and is best used only if you have no phone access or internet connection.
You can download Form 9465 from IRS.gov or request it by calling 1-800-829-1040. Include a check or money order for your first payment if you want to speed up processing, though this is not required.
Understanding payment plan fees and how much you will pay each month
The IRS charges a setup fee for most payment plans. The fee depends on how you set up the plan and how long the plan lasts. Short-term plans (120 days or fewer) have no setup fee. Long-term plans charge between $31 and $225, depending on whether you pay by automatic bank withdrawal or by check.
Your monthly payment amount is up to you, within limits. The IRS will not let you stretch a payment plan so long that you will still owe money more than 72 months from now (six years). If you owe $10,000, for example, you must pay at least about $139 per month. The IRS will calculate the minimum based on your total debt and show it to you before you commit.
On top of your monthly payment, the IRS continues to charge interest and penalties on the unpaid balance. Interest is currently 8% per year (this rate changes quarterly), and penalties are usually 0.5% per month of the unpaid amount. These charges are added to your balance each month, so your total debt grows even as you make payments.
What happens after you set up a payment plan
Once your plan is approved, the IRS sends you a notice that includes your agreement number, your monthly payment amount, and the due date each month. Keep this notice; it is your proof that you have a plan in place. If a creditor, landlord, or employer asks whether you are paying the IRS, you can show them this notice.
Make your payment on the due date each month. If you set up automatic bank withdrawal, the IRS will pull the money from your account on the date you chose. If you pay by check or online, you are responsible for sending the payment on time. Late payments can trigger penalties and may cause the IRS to cancel your plan.
If your financial situation changes — you lose a job, get a raise, or receive a large refund — you can modify your plan. You can increase or decrease your monthly payment, extend the plan, or cancel it entirely. Contact the IRS using the same methods (online, phone, or mail) to make changes.
What to do if the IRS rejects your payment plan request
The IRS may reject your request if you have not filed all required tax returns, if you are currently in bankruptcy, or if you owe more than the IRS allows for a payment plan in your situation. If your request is rejected, the IRS will send you a notice explaining why.
If you were rejected because you have not filed past returns, file them first and then resubmit your payment plan request. If you were rejected because of the amount owed, you may still be able to set up a plan by calling 1-800-829-1040 and speaking with a representative who can review your case. If you are in bankruptcy, you must wait until your bankruptcy is discharged or dismissed before the IRS will accept a payment plan.
Frequently Asked Questions
Can I set up a payment plan if I have not filed my tax return yet?
No. You must file your tax return before the IRS will set up a payment plan. If you have not filed, file as soon as you can, even if you cannot pay. Once your return is processed and you receive a bill, you can then contact the IRS about a plan.
What happens if I miss a payment?
The IRS will send you a notice. If you miss a payment by more than 30 days, the IRS may cancel your plan and demand full payment of the remaining balance. If you know you will miss a payment, contact the IRS before the due date to ask about a temporary delay or a plan modification.
Can I pay off my plan early without a penalty?
Yes. You can pay off your plan at any time without penalty. If you receive a bonus, tax refund, or inheritance, you can send a lump sum to the IRS to reduce or eliminate your remaining balance. Interest and penalties will stop accruing once you pay in full.
Do I need a lawyer or tax professional to set up a payment plan?
No. You can set up a payment plan yourself using the online tool, phone line, or mail. A tax professional or attorney can help if your situation is complex or if the IRS has rejected your request, but most people handle this on their own.
Will a payment plan affect my credit score?
A payment plan itself does not appear on your credit report. However, the original tax debt may have already been reported to credit bureaus before you set up the plan. Making your monthly payments on time will not improve your credit, but missing payments will make it worse.