How to ask the IRS for a payment plan
You can request a payment plan directly from the IRS through three main channels: online through their website, by phone, or by mail. The fastest route is usually the IRS website, where you can set up a plan in minutes without speaking to anyone. If you owe less than $50,000 in combined taxes, penalties, and interest, you can use the online system. For larger amounts or if you prefer to speak with someone, you'll call the IRS at the number on your bill or notice.
The IRS will ask for your filing status, the tax year in question, and how much you can pay each month. They don't require a reason for the payment plan, and they won't deny you based on income. What matters is that you're willing to pay what you owe over time rather than ignoring the debt.
Key Takeaways
- The IRS Online Payment Agreement tool at IRS.gov lets you set up a plan in minutes if you owe under $50,000 and have filed your return.
- You'll need your Social Security Number, date of birth, and the amount you owe to start a request online or by phone.
- Monthly payments can be as low as $25, but the longer your plan runs, the more interest and penalties you'll pay.
- Once approved, you must make payments on time every month or the plan can be cancelled and the full balance becomes due when ready.
- If your situation changes and you can't afford the monthly payment, you can request a modification before the plan is cancelled.
Setting up a plan online through IRS.gov
Go to IRS.gov and search for "Online Payment Agreement" or navigate directly to the payment agreement section. You'll need your Social Security Number, date of birth, the tax year you owe for, and the total amount owed. The system will walk you through selecting a monthly payment amount and a due date that works for your pay schedule.
The online tool only works if you've already filed your tax return for the year in question. If you haven't filed yet, you must file before requesting a payment plan. The system will also reject you if you owe more than $50,000 or if you have an existing payment plan that's still active.
Once you submit online, you'll receive a confirmation number when ready. The plan typically becomes active within 24 hours. You won't receive a formal agreement in the mail unless you request one, but you should save or print your confirmation for your records.
Calling the IRS to request a plan by phone
Call the IRS at the phone number printed on your tax bill or notice. If you don't have a bill, call 1-800-829-1040. Have your Social Security Number, filing status, and the tax year ready before you call. Wait times vary, but calling early in the morning or mid-week typically means shorter holds.
Tell the representative you want to set up a payment plan. They'll confirm the amount owed, discuss what you can afford to pay monthly, and propose a due date. You can ask for a specific date that aligns with your payday. The representative will also explain any setup fees that explore—these vary depending on the type of plan and range from $31 to $225.
After the call, you'll receive a written agreement in the mail within two weeks. Don't start making payments until you receive this agreement and confirm the terms match what you discussed on the phone.
What the IRS will ask you and what you need to provide
The IRS needs to know your filing status (single, married filing jointly, married filing separately, or head of household), the specific tax year you owe for, and the exact amount owed including penalties and interest. They'll also ask what you can afford to pay each month and when you'd prefer to make that payment.
You don't need to provide proof of income, bank statements, or a hardship explanation. The IRS doesn't care why you owe or whether you're struggling—they only care that you're committing to pay. If you're unsure of the exact amount owed, the IRS representative or the online tool will show you the current balance.
If you're requesting a plan for a spouse or business, you'll need their Social Security Number or Employer Identification Number as well. For joint returns, both spouses can be on the plan, or one spouse can request it on behalf of both.
Setup fees and how they're added to your balance
The IRS charges a setup fee to create a payment plan. The amount depends on how you set it up and the type of plan you choose. If you use the online system, the fee is typically $31 to $225. If you call or mail in a request, the fee is usually $31 to $225 as well, depending on whether you set up automatic payments.
The setup fee is added to your total balance owed, so it increases the amount you'll pay over time. For example, if you owe $5,000 and the setup fee is $31, your total becomes $5,031. This new total is divided into your monthly payments.
Setting up automatic payments from your bank account usually results in a lower fee than making manual payments. If you can arrange automatic payments, do so—it's cheaper and reduces the risk of missing a payment.
How long payment plans last and what happens if you miss a payment
Payment plan length depends on how much you owe and how much you can pay monthly. The IRS typically allows plans of 24 to 72 months, though longer plans are possible for larger amounts. A shorter plan means you pay less interest overall, but a longer plan means lower monthly payments.
If you miss a payment, the IRS will send you a notice. You usually have 30 days to make the missed payment before the plan is cancelled. Once cancelled, the full remaining balance becomes due when ready, and the IRS can pursue collection actions like wage garnishment or bank levies.
If you know you can't make a payment on time, contact the IRS before the due date. You can request a one-time extension or ask to modify the plan to a lower monthly amount. The IRS is more willing to work with you if you reach out proactively rather than waiting for them to contact you.
Modifying or cancelling your plan
If your financial situation changes and you can no longer afford the monthly payment, you can request a modification. Call the IRS or log into your online account to request a lower payment amount or a longer plan duration. The IRS will review your request and may approve a change without requiring new documentation.
If you come into money and want to pay off the plan early, you can do so without penalty. There's no fee for paying ahead of schedule. You can also cancel the plan at any time and pay the full remaining balance in one lump sum.
If the IRS initiates a collection action (like a wage garnishment) while you're on a payment plan, the plan may be suspended. Contact the IRS when ready to explain that you have an active plan and want to keep it in place.
Frequently Asked Questions
Can I set up a payment plan if I haven't filed my tax return yet?
No. You must file your return before the IRS will set up a payment plan. If you owe but haven't filed, file your return first, then request the plan. If you're unable to file, you can request an extension, but you still owe the tax on the original due date.
What's the minimum monthly payment the IRS will accept?
The IRS will accept payments as low as $25 per month, though the exact minimum may vary. A very low payment means your plan will run longer and you'll pay more in interest and penalties. Ask the IRS representative what payment amount they recommend for your balance.
Will a payment plan stop the IRS from garnishing my wages or levying my bank account?
Once your plan is approved and active, the IRS typically stops collection actions. However, if you miss payments and the plan is cancelled, collection actions can resume. Make sure your plan is officially approved before assuming you're protected.
Can I have a payment plan if I owe for multiple tax years?
Yes. You can combine multiple years into one payment plan as long as the total owed is under $50,000. The IRS will set one monthly payment that covers all the years you owe for. If you owe more than $50,000, you'll need to call the IRS to discuss options.
What happens to my payment plan if I file for bankruptcy?
Filing for bankruptcy may pause or modify your payment plan, depending on the type of bankruptcy and your specific situation. Contact the IRS when ready if you file for bankruptcy to explain your circumstances. Do not stop making payments unless the IRS or your bankruptcy attorney tells you to.