You can set up a payment plan with the IRS directly, by phone, mail, or online through their website
The IRS offers three types of payment plans: a short-term extension (up to 180 days with no setup fee), an installment agreement (monthly payments over months or years), and a Currently Not Collectible status (temporary pause if you cannot pay at all). Most people use an installment agreement. You do not need to wait for a bill or notice—you can request one as soon as you know you owe.
The fastest route is the IRS website at irs.gov/payments, where you can set up an online installment agreement in minutes if you owe $50,000 or less in combined taxes, penalties, and interest. If you owe more, prefer to speak to someone, or need a different arrangement, you can call the IRS at 1-800-829-1040 (Monday through Friday, 7 a.m. to 7 p.m. your local time) or mail Form 9465 (Installment Agreement Request) with your tax return or notice of tax due.
Key Takeaways
- The IRS website (irs.gov/payments) is the fastest way to set up a payment plan if you owe $50,000 or less and have a recent tax return on file.
- Monthly payments on an installment agreement typically range from $25 to several hundred dollars depending on what you owe and how long you want to pay.
- Setup fees range from $31 to $225 depending on the type of plan and whether you pay online or by mail, and these fees are added to what you owe.
- Once approved, you will receive a notice in the mail confirming your plan terms, payment due date each month, and the total number of payments.
- If your financial situation changes, you can modify or end your plan by contacting the IRS, and missing a payment does not automatically cancel the agreement.
Setting up an agreement online through the IRS website
Go to irs.gov/payments and select "Set Up a Payment Plan." You will need your Social Security number or Individual Taxpayer Identification Number, your filing status, the tax year you owe for, and your bank account or debit card information. The system will show you the amount owed and let you choose a monthly payment amount—the IRS will calculate how many months it will take to pay off.
The online system works only if you owe $50,000 or less in total tax, penalties, and interest combined, and if you have filed a tax return for the year you owe. If either condition is not met, you will need to call or mail a form instead. The setup fee for an online agreement is $31 if you pay by direct debit from your bank account, or $225 if you pay by credit card or debit card.
After you submit, you will receive a confirmation number on screen. The IRS will mail you an official notice within two weeks showing your payment plan terms, your monthly payment amount, and the date each payment is due. Payments typically begin 30 days after approval.
Calling the IRS to request a payment plan
Call 1-800-829-1040 and tell the representative you want to set up a payment plan. Have your Social Security number, filing status, the tax year you owe for, and information about your income and expenses ready. The representative will discuss your situation, calculate a payment amount you can afford, and set up the plan over the phone.
Phone setup is useful if you owe more than $50,000, if you have not filed a return for the year you owe, or if you want to explain your circumstances before committing to a payment amount. The setup fee is $225 for a phone agreement, or $31 if you set up direct debit during the call. Wait times can be long, especially during tax season (January through April), so call early in the morning or later in the week if possible.
You will receive a written notice in the mail confirming the plan. Do not rely on the phone conversation alone—the official notice is your proof of the agreement and shows the exact payment terms.
Mailing Form 9465 to the IRS
Download Form 9465 (Installment Agreement Request) from irs.gov or request it by calling 1-800-829-1040. Fill in your name, address, Social Security number, the tax year you owe for, and the monthly payment amount you can afford. Attach it to your tax return if you have not filed yet, or mail it separately with a copy of the notice of tax due if you have already filed.
Mail the form to the IRS address shown in your tax notice, or to the address listed on the Form 9465 instructions. Processing by mail takes four to six weeks. The setup fee is $225 for a mailed agreement, or $31 if you include a request for direct debit and provide your bank account information on the form.
Keep a copy of the form and the envelope receipt for your records. You will receive a written notice from the IRS confirming your plan once it is processed.
What monthly payment amounts look like and how long plans last
Monthly payments depend on three things: the total amount you owe, how long you want to take to pay it off, and your ability to pay. The IRS has no set minimum payment, but most agreements require at least $25 per month. If you cannot afford $25, you may be placed in Currently Not Collectible status instead, which pauses collection efforts temporarily.
A typical example: if you owe $5,000 and choose a 60-month plan, your monthly payment would be roughly $83 to $100 (depending on interest that accrues during the plan). If you owe $15,000 and choose a 120-month plan, your payment might be $125 to $150 per month. The longer the plan, the more interest you pay overall, but the lower each monthly payment.
You can choose a payment amount that fits your budget, and the IRS will calculate how many months the plan will last. If you want to pay faster later, you can make extra payments without penalty. The IRS will send you a payment coupon or instructions for paying online, by phone, or by automatic bank withdrawal (direct debit).
Setup fees and what gets added to your debt
The IRS charges a setup fee when you create a payment plan. The fee depends on how you set it up:
| Setup Method | Fee if Direct Debit | Fee if Other Payment Method |
|---|---|---|
| Online (irs.gov/payments) | $31 | $225 |
| Phone (1-800-829-1040) | $31 | $225 |
| Mail (Form 9465) | $31 | $225 |
Direct debit means the IRS withdraws your payment automatically from your bank account each month. It costs $31 and is the cheapest option. If you pay by check, credit card, or debit card instead, the fee is $225. The setup fee is added to the total amount you owe and included in your monthly payment calculation.
In addition to the setup fee, you will owe interest and penalties on the original tax debt. Interest accrues daily at a rate set by the IRS (currently around 8% per year, but this changes quarterly). Failure-to-pay penalties also accrue at 0.5% per month of the unpaid tax. These are calculated into your payment plan, so your monthly payment covers tax, interest, penalties, and the setup fee.
Modifying or ending your payment plan
If your financial situation changes and you need a lower monthly payment, you can request a modification. Contact the IRS at 1-800-829-1040 or log into your account at irs.gov to change your payment amount or extend the plan. The IRS may charge a $31 modification fee if you modify online or by phone, or $225 if you modify by mail. Modifications are usually processed within two to four weeks.
If you receive a large sum of money (a bonus, inheritance, or tax refund) and want to pay off the plan early, you can do so without penalty. Send a check or make a payment online and note that it is for your installment agreement account. The IRS will apply it to your remaining balance and may shorten your plan.
If you miss a payment, your plan does not automatically cancel. However, if you miss a payment by more than 30 days, the IRS may terminate the agreement and resume collection efforts. If this happens, contact the IRS immediately to reinstate the plan or set up a new one.
What happens if you cannot afford any monthly payment
If you cannot afford even a $25 monthly payment, you can request Currently Not Collectible (CNC) status instead of a payment plan. This temporarily pauses IRS collection efforts while you deal with financial hardship. You do not make payments during CNC status, but interest and penalties continue to accrue on your debt.
CNC status is not permanent. The IRS will review your case every two years and may contact you to resume payments if your financial situation improves. You can request CNC status by calling 1-800-829-1040 or by mailing Form 433-F (Collection Information Statement for Wage Earners and Self-Employed Individuals) to the IRS address in your notice.
CNC status buys you time but does not forgive the debt. If you later receive a refund, the IRS may apply it to your balance. If you inherit money or receive a large payment, the IRS may resume collection. It is a temporary measure, not a solution.
Frequently Asked Questions
Can I set up a payment plan if I have not filed my tax return yet?
You can request a payment plan before filing if you know you owe, but the IRS prefers to have a filed return on record. If you have not filed, call 1-800-829-1040 or mail Form 9465 with an explanation. The IRS may ask you to file first before approving the plan.
What if I owe taxes from multiple years?
You can set up one payment plan that covers all years you owe for, as long as the total is $50,000 or less (for online setup). The IRS will calculate a single monthly payment that covers all years combined. If you owe more than $50,000, call or mail a form instead.
Will setting up a payment plan hurt my credit score?
A payment plan itself does not appear on your credit report. However, an unpaid tax debt can be reported to credit bureaus and will harm your score. Setting up a plan shows you are addressing the debt, which is better than owing with no plan, but it does not erase the damage already done.
Can the IRS take my refund if I am on a payment plan?
Yes. If you are on a payment plan and receive a tax refund in a future year, the IRS will apply it to your remaining balance automatically. You will not receive the refund. If you want to avoid this, contact the IRS to discuss your options before filing.
What if I lose my job and cannot make my payment?
Contact the IRS immediately at 1-800-829-1040 and explain your situation. You can request a temporary modification to lower your payment, pause the plan temporarily, or switch to Currently Not Collectible status. Do not simply stop paying—the IRS needs to know about the change.