The IRS has three main ways to reach them: phone, online through their website, or mail

The fastest route is calling the IRS directly at 1-800-829-1040. This number works for individuals and is available Monday through Friday, 7 a.m. to 7 p.m. your local time. Wait times are longest in the morning and during tax season (January through April), so calling in the afternoon or after April usually means a shorter hold.

If you prefer not to call, you can set up a payment plan online at IRS.gov under "Payment Plans" without speaking to anyone. This works if you owe $50,000 or less in combined taxes, penalties, and interest. The online tool lets you choose between a short-term plan (120 days or fewer) or a long-term installment agreement, and you can see the setup fee before you commit.

For mail, send Form 9465 (Installment Agreement Request) to the IRS address listed on your tax notice. This is slower — it takes four to six weeks for the IRS to process — but it creates a paper record. Use this route only if you cannot call or access the online system.

Key Takeaways

  • Call 1-800-829-1040 to speak with an IRS representative about payment arrangements, or set up a plan online at IRS.gov if you owe $50,000 or less.
  • The IRS charges a setup fee for installment agreements, ranging from $31 to $225 depending on the payment method and agreement type you choose.
  • Short-term plans (under 120 days) have lower or no setup fees, while long-term plans spread payments over months or years and cost more to set up.
  • You must have received a tax notice or bill before you can set up a plan; the IRS will not negotiate an arrangement on taxes you have not yet filed.
  • If you miss a payment on your plan, the agreement can be cancelled and the full amount becomes due immediately, plus penalties and interest continue to accrue.

What information you need before you call or go online

Have your Social Security number, the tax year(s) you owe for, and the total amount you owe ready. If you have a notice from the IRS, have that in front of you — it shows the exact balance and the deadline for response. If you are calling on behalf of a business, you will need the Employer Identification Number (EIN) instead of a Social Security number.

The IRS will also ask how much you can pay each month. Be realistic about this number. If you commit to a payment you cannot sustain, the IRS will cancel the agreement and pursue collection action. A smaller monthly payment over a longer period is better than a large payment you will miss.

The difference between short-term and long-term plans

A short-term plan covers payment within 120 days or fewer. The setup fee is $31 if you pay by direct debit from your bank account, or $225 if you pay by check, money order, or credit card. There is no interest charged on the setup fee itself, but interest and penalties continue to accrue on the unpaid tax balance until you pay it off.

A long-term installment agreement spreads payments over more than 120 days, sometimes for years. The setup fee is $31 for direct debit or $225 for other payment methods. Long-term plans are what most people use when they cannot pay the full amount quickly. The monthly payment is lower, but you pay more in total interest and penalties because the debt sits longer.

If you set up the plan online, the IRS offers a reduced setup fee of $31 if you agree to pay by automatic bank withdrawal. This is the cheapest option and also the most reliable — the IRS will not cancel your plan if a payment fails once, as long as you correct it.

What happens after you set up the plan

Once your plan is approved, the IRS sends you a notice confirming the monthly payment amount, due date, and agreement terms. Payments are due on the date you selected, usually the 15th or 28th of each month. You can pay by direct debit, check, money order, credit card, or through the IRS payment portal.

Interest and penalties continue to accrue on the unpaid balance each month until the debt is fully paid. This means your total cost rises even as you make payments. The IRS publishes the current interest rate (it changes quarterly) and the failure-to-pay penalty (usually 0.5% per month of the unpaid tax) on their website.

If you miss a payment, the IRS will send you a notice. You have a grace period — usually 30 days — to make the payment before the agreement is cancelled. If the agreement is cancelled, the full remaining balance becomes due immediately, and the IRS can resume collection action including wage garnishment or bank levy.

When you cannot afford the monthly payment the IRS suggests

If the IRS calculates a monthly payment you cannot sustain, you can request a lower amount when you call or during the online setup. Be prepared to explain your income and expenses. The IRS has a formula they use to determine the minimum payment, but they have discretion to lower it if you show genuine hardship.

If you are in severe financial hardship — meaning you cannot pay basic living expenses and the tax debt at the same time — you may be able to request Currently Not Collectible (CNC) status. This temporarily pauses collection action and stops the IRS from garnishing wages or levying bank accounts. Interest and penalties still accrue, but you are not required to make monthly payments. CNC status lasts 120 days and is reviewed periodically; the IRS can reinstate collection efforts if your financial situation improves.

Installment agreements for self-employed people and business owners

If you owe self-employment tax or business income tax, the process is the same: call 1-800-829-1040 or set up a plan online. You will need your EIN and the tax year(s) involved. The setup fees and payment terms are identical to those for individual income tax.

If your business owes more than $50,000, you cannot use the online system. You must call the IRS or submit Form 9465 by mail. The IRS may also require you to provide financial statements or a detailed explanation of how you plan to pay.

What to do if the IRS rejects your payment plan request

The IRS can reject a plan request if you have not filed all required tax returns, if you are currently in bankruptcy, or if you owe more than the limit for online plans ($50,000) and have not provided sufficient financial information. If your request is rejected, the notice will explain why.

If you disagree with the rejection, you can request an appeal or ask to speak with a supervisor when you call. You can also submit additional financial information by mail with Form 9465. The IRS must respond to your appeal within 30 days.

If you cannot reach an agreement with the IRS and the debt is large or complex, you may want to consult a tax professional or an Enrolled Agent (EA). An EA is authorized to represent you before the IRS and can negotiate on your behalf. This costs money upfront but can result in a lower payment or a more favorable agreement.

Frequently Asked Questions

Can I set up a payment plan if I have not filed my tax return yet?

No. You must file your return first. The IRS cannot set up a payment plan on taxes you have not reported. File your return as soon as you can, even if you cannot pay the full amount — filing stops the failure-to-file penalty from growing, and then you can request a plan.

What if I miss a payment on my installment agreement?

The IRS will send you a notice. You usually have 30 days to make the missed payment before the agreement is cancelled. If the agreement is cancelled, the full remaining balance becomes due immediately. Contact the IRS right away if you miss a payment to ask about a grace period or a revised plan.

Can I pay off my plan early without a penalty?

Yes. There is no penalty for paying off an installment agreement early. If you receive a bonus, inheritance, or other lump sum, you can send it to the IRS and reduce the remaining balance. This saves you money on interest and penalties.

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

No. You can set up a plan yourself by calling the IRS or using their online system. A tax professional or Enrolled Agent can help if the amount is large, if you have multiple years of unpaid taxes, or if you want someone to negotiate on your behalf.

What if my financial situation changes and I cannot make the payments anymore?

Call the IRS immediately at 1-800-829-1040 and explain the change. You can request a lower monthly payment, a longer repayment period, or Currently Not Collectible status if you are in hardship. Do not simply stop paying — the IRS will cancel the agreement and pursue collection.