Skip to main content
HL1Housing Living 101

How to Reach the IRS About Setting Up a Payment Plan

By Tanika Patel
8 minute read

The IRS phone number for payment plans is 1-800-829-1040, available Monday through Friday, 7 a.m. to 7 p.m. your local time

When you owe federal income tax and cannot pay in full by the deadline, the IRS lets you set up an installment agreement — a formal plan to pay what you owe over time. You reach the IRS to arrange this by calling their main tax line. The wait time varies by season; it is usually shortest in early morning and longest during tax season (January through April).

Before you call, have your Social Security number, the tax year you owe for, and the amount you owe ready. If you are calling about a bill the IRS sent you, have that notice in front of you — it contains a reference number that speeds up the process. The IRS representative will walk you through the plan options, calculate your monthly payment, and confirm the terms before you hang up.

Key Takeaways

  • Call 1-800-829-1040 Monday through Friday, 7 a.m. to 7 p.m. your local time to set up an installment agreement with the IRS.
  • Have your Social Security number, the tax year owed, the total amount owed, and any IRS notice in front of you before calling.
  • The IRS offers short-term plans (120 days or fewer) and long-term plans (longer than 120 days), each with different setup fees.
  • You can also set up a plan online through IRS.gov without calling, which is often faster and has no wait time.
  • If you cannot afford even a monthly payment, tell the IRS — they may place your account in currently not collectible status while you recover financially.

What to expect when you call the IRS payment line

The IRS phone system will ask you to enter your Social Security number and other information using your keypad before connecting you to a representative. This automated step usually takes two to three minutes. Once connected, the representative will verify your identity, pull up your tax account, and review what you owe.

The representative will then explain your payment plan options. For most people, this means choosing between a short-term plan (you pay within 120 days) or a long-term plan (you pay over several months or years). They will calculate what your monthly payment would be, tell you when payments are due, and explain any fees. You do not have to decide on the call — you can ask for time to think it over — but most people finalize the plan during the conversation.

The entire call usually takes 15 to 30 minutes. If the line is busy, you can stay on hold or call back later. The IRS does not offer callback options on this line, so you will wait or try again.

Short-term vs. long-term payment plans and their costs

A short-term plan is for people who can pay their full tax debt within 120 days. There is no setup fee for a short-term plan, and you simply agree to pay by a specific date. This is the cheapest option if you can manage it.

A long-term plan (called a formal installment agreement) is for people who need more than 120 days. The IRS charges a setup fee, which varies depending on how you set up the plan. If you set it up by phone or in person, the fee is higher than if you set it up online. Once the plan is in place, you make monthly payments on a date you choose, usually between the 1st and 28th of each month.

The longer your plan, the more interest and penalties you will owe overall, because the IRS charges interest on unpaid tax every day. However, a longer plan means a lower monthly payment, which may be what you need to stay current. The representative will show you the total cost of different plan lengths so you can decide what works for your budget.

Setting up a payment plan online instead of calling

If you want to avoid the phone line entirely, you can set up a payment plan through IRS.gov using the Online Payment Agreement tool. This tool is available 24 hours a day and usually takes 10 to 15 minutes. You will need your Social Security number, date of birth, and the amount you owe.

The online tool works best if you owe less than $50,000 and have not had an installment agreement with the IRS in the past 120 days. If you owe more or have other complications, you will need to call. The online tool also charges a lower setup fee than the phone line, so it saves money if you are may be able to access to use it.

After you complete the online agreement, you will receive a confirmation number and an email with the plan details. Your first payment is usually due 21 days after you set up the plan. You can make payments online, by phone, or by mail — the IRS will give you all the options.

What happens if you cannot afford a monthly payment

If the representative calculates a monthly payment that you cannot afford, tell them. Do not agree to a payment you cannot make — missed payments damage your plan and trigger penalties. Instead, ask about currently not collectible status. This is a temporary pause on collection while you recover financially.

While your account is in currently not collectible status, you do not have to make payments, but interest and penalties keep adding up. The IRS will review your account every few years to see if your situation has improved. Once you can afford payments again, they will contact you to restart the plan.

You can also ask the representative to calculate a plan based on a lower monthly amount — for example, $50 or $100 per month — even if it means the plan lasts several years. The IRS will work with you on this, though the total cost will be higher because interest accrues longer.

Payment methods and what to do after your plan is set up

Once your plan is in place, you can pay by automatic bank withdrawal (ACH), credit or debit card, check, money order, or online through IRS.gov. Automatic withdrawal is the easiest and most reliable — the IRS pulls the payment from your bank account on the date you choose each month. If you set up automatic withdrawal during your call, the setup fee is lower than if you pay manually.

After your plan is approved, the IRS will send you a notice in the mail confirming the terms. Keep this notice for your records. If your financial situation changes — you lose your job, get a raise, or face an emergency — contact the IRS to modify the plan. You can call the same number or use the online tool to request a change.

If you miss a payment, the IRS will send you a notice. You have a grace period (usually 30 days) to catch up before the plan is cancelled. If the plan is cancelled, you will owe the full remaining balance immediately, so contact the IRS right away if you miss a payment.

Other ways to contact the IRS about payment plans

Besides the phone line, you can visit an IRS office in person to set up a payment plan. To find the office nearest you, go to IRS.gov and search for "IRS office locations." Walk-in hours vary by location, and some offices require an appointment. In-person setup takes longer than a phone call but may be helpful if you have complex questions or language barriers.

You can also mail a written request to the IRS, though this is the slowest method — it can take several weeks for the IRS to respond. If you choose to mail a request, include your name, Social Security number, the tax year owed, the amount owed, and a brief explanation of your situation. Send it to the IRS address on your tax notice.

If you work with a tax professional — a CPA, enrolled agent, or tax attorney — they can contact the IRS on your behalf using a power of attorney form. This is useful if you are uncomfortable calling or if your situation is complicated.

Frequently Asked Questions

What if I cannot reach anyone when I call 1-800-829-1040?

The IRS phone lines are busiest during tax season and early morning. Try calling in the afternoon or on Thursday or Friday, when wait times are often shorter. You can also try the next day. If you need help urgently, consider setting up your plan online through IRS.gov instead — it has no wait time and is available 24 hours.

Do I have to pay a setup fee for a payment plan?

Short-term plans (120 days or less) have no setup fee. Long-term plans have a setup fee that varies: it is lower if you set up online or use automatic bank withdrawal, and higher if you set up by phone or pay manually. The representative will tell you the exact fee before you agree to the plan.

Can I change my payment plan after it is set up?

Yes. If your financial situation changes, you can call the IRS to modify the plan — for example, to lower your monthly payment or extend the timeline. You can also use the online tool to request a change. The IRS may charge a fee to modify the plan, depending on how you make the change.

What if I pay off my plan early?

You can pay off your plan at any time without penalty. Simply pay the remaining balance in full, and the plan ends. You do not have to make all the remaining monthly payments. Contact the IRS to confirm the exact payoff amount, since interest continues to accrue until the balance is zero.

Will a payment plan stop the IRS from garnishing my wages or seizing my bank account?

Once you have an approved payment plan in place, the IRS generally stops collection actions like wage garnishment or bank levies. However, if you miss payments and the plan is cancelled, collection actions can resume. This is another reason to contact the IRS immediately if you cannot make a payment.