Additional Information on Payment Plans

  1. What are the benefits of paying my taxes on time?
  2. What is a payment plan?
  3. What are payment plan costs and fees?
  4. Why do I owe interest and penalties?
  5. Why do I have to pay a setup fee?
  6. Am I eligible for a waiver or reimbursement of the user fee?
  7. How do I determine if I qualify for Low Income Taxpayer Status?
  8. How do I check my balance and payment history?
  9. Am I eligible to apply online for a payment plan?
  10. What do I need to apply for a payment plan?
  11. What if I can't log in to see my payment plan or apply for one?
  12. What if I am not eligible to apply online for a payment plan?
  13. How do I review my payment plan?
  14. What can I change with my payment plan online (not paid through a Direct Debit)?
  15. How do I revise my payment plan online?
  16. How do I manage my plan to avoid default?

What are the benefits of paying my taxes on time?

By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.

If you're not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There's also a penalty for failure to file a tax return, so you should file timely even if you can't pay your balance in full. It's always in your best interest to pay in full as soon as you can to minimize the additional charges.

Benefits

  • Avoid accruing additional interest and penalties
  • Avoid offset of your future refunds
  • Avoid issues obtaining loans

If you can't pay the full amount due, pay as much as you can and visit http://www.irs.gov/payments to consider our online payment options.

Here are important facts that you should know: Important Facts about Filing Late and Paying Penalties

What is a payment plan?

A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame. If you qualify for a short-term payment plan you will not be liable for a user fee. Not paying your taxes when they are due may cause the filing of a Notice of Federal Tax Lien and/or an IRS levy action. See Publication 594, The IRS Collection Process (PDF).

What are payment plan costs and fees?

If the IRS approves your payment plan (installment agreement), one of the following fees will be added to your tax bill. Changes to user fees are effective for installment agreements entered into on or after April 10, 2018. For individuals, balances over $25,000 must be paid by Direct Debit. For businesses, balances over $10,000 must be paid by Direct Debit.

Apply online through the Online Payment Agreement tool or apply by phone, mail, or in-person at an IRS walk-in office by submitting Form 9465, Installment Agreement Request.

Pay amount owed in full today

Payment Method Costs
Individuals only:

Pay directly from a checking or savings account (Direct Pay)
Individuals and businesses:
  • Pay electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required)
  • Pay by check, money order or debit/credit card
Fees apply when paying by card
  • Apply online: $0 setup fee
  • Apply by phone, mail, or in-person: $0 setup fee
  • No future penalties or interest

Pay amount owed in 120 days or less

*Note – only individual taxpayers can apply for a short-term payment plan online.

Payment Method Costs
After applying for a short-term payment plan, payment options include:
  • Pay directly from a checking or savings account (Direct Pay) (Individuals only)
  • Pay electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required)
  • Pay by check, money order or debit/credit card
Fees apply when paying by card
  • Apply online: $0 setup fee (individuals only)
  • Apply by phone, mail, or in-person: $0 setup fee
  • Plus accrued penalties and interest until the balance is paid in full

Pay amount owed in more than 120 days, with monthly payments

Payment Options Costs

Option 1: Pay through Direct Debit (automatic monthly payments from your checking account). Also known as a Direct Debit Installment Agreement (DDIA).

  • Apply online: $31 setup fee
  • Apply by phone, mail, or in-person: $107 setup fee
  • Low income: Apply online, by phone, or in-person: setup fee waived
  • Plus accrued penalties and interest until the balance is paid in full

Option 2: After applying for a long-term payment plan, payment options include:

  • Make monthly payment directly from a checking or savings account (Direct Pay) (Individuals only)
  • Make monthly payment electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required)
  • Make monthly payment by check, money order or debit/credit card
    Fees apply when paying by card
  • Apply online: $149 setup fee
  • Apply by phone, mail, or in-person: $225 setup fee
  • Low income: Apply online, by phone, or in-person: $43 setup fee which may be reimbursed if certain conditions are met
  • Plus accrued penalties and interest until the balance is paid in full

Note: Existing Direct Debit Installment Agreements (automatic monthly payments from your checking account) cannot be changed online. Contact us if your payments are made through Direct Debit.  You may convert from a non-Direct Debit agreement to a Direct Debit Installment Agreement online.

Payment Method Costs
  • Pay through Direct Debit (automatic monthly payments from your checking account). Also known as a Direct Debit Installment Agreement (DDIA).
  • Make monthly payment directly from a checking or savings account (Direct Pay) (Individuals only)
  • Make monthly payment electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required)
  • Make monthly payment by check, money order or debit/credit card
Fees apply when paying by card
  • Apply (revise) online: $10 fee (existing Direct Debit agreements cannot be revised online)
  • Apply (revise) by phone, mail or in-person: $89 fee
Low income:
  • Apply (revise) online: $10 fee, which may be reimbursed if certain conditions are met (existing Direct Debit agreements cannot be revised online)
  • Apply (revise) by phone, mail or in-person: $43 fee, which may be reimbursed if certain conditions are met
    • $0 fee for changes made to existing Direct Debit installment agreements

Note: If making a debit/credit card payment, processing fees apply. Processing fees go to a payment processor and limits apply.

Why do I owe interest and penalties?

Interest and some penalty charges continue to be added to the amount you owe until the balance is paid in full. Learn more about penalties and interest.

Why do I have to pay a setup fee?

The Office of Management and Budget has directed federal agencies to charge user fees for services such as the Installment Agreement program. The IRS utilizes the user fees to cover the cost of processing installment agreements.

Am I eligible for a waiver or reimbursement of the user fee?

Waiver or reimbursement of the user fees only applies to individual taxpayers with adjusted gross income, as determined for the most recent year for which such information is available, at or below 250% of the applicable federal poverty level (low-income taxpayers) that enter into long-term payment plans (installment agreements) on or after April 10, 2018. If you are a low-income taxpayer, the user fee is waived if you agree to make electronic debit payments by entering into a Direct Debit Installment Agreement (DDIA). If you are a low-income taxpayer but are unable to make electronic debit payments by entering into a DDIA, you will be reimbursed the user fee upon the completion of the installment agreement. If the IRS system identifies you as a low income taxpayer, then the Online Payment Agreement tool will automatically reflect the applicable fee.

How do I determine if I qualify for Low Income Taxpayer Status?

If you believe that you meet the requirements for low income taxpayer status, but the IRS did not identify you as a low-income taxpayer, please review Form 13844: Application for Reduced User Fee for Installment Agreements (PDF) for guidance. Applicants should submit the form to the IRS within 30 days from the date of their installment agreement acceptance letter to request the IRS to reconsider their status.

Internal Revenue Service
PO Box 219236, Stop 5050
Kansas City, MO 64121-9236

How do I check my balance and payment history?

You can view your current amount owed and payment history by viewing your tax account. Viewing your tax account requires identity authorization with security checks. Allow one to three weeks (three weeks for non-electronic payments) for a recent payment to be credited to your account.

Am I eligible to apply online for a payment plan?

Your specific tax situation will determine which payment options are available to you. Payment options include full payment, short-term payment plan (paying in 120 days or less) or a long-term payment plan (installment agreement) (paying in more than 120 days).

If you are an individual, you may qualify to apply online if:

  • Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns.
  • Short-term payment plan: You owe less than $100,000 in combined tax, penalties and interest.

If you are a business, you may qualify to apply online if:

  • Long-term payment plan (installment agreement): You have filed all required returns and owe $25,000 or less in combined tax, penalties, and interest.

If you are a sole proprietor or independent contractor, apply for a payment plan as an individual.

What do I need to apply online for a payment plan?

If you previously registered for an Online Payment Agreement, Get Transcript, or an Identity Protection PIN (IP PIN), log in with the same user ID and password. You will need to confirm your identity by providing the information listed below if you haven’t already done so.

I am applying as an individual:

  • Name exactly as it appears on your most recently filed tax return
  • Valid e-mail address 
  • Address from most recently filed tax return
  • Date of birth
  • Filing status
  • Your Social Security Number or Individual Tax ID Number (ITIN)
  • Based on the type of agreement requested, you may also need the balance due amount
  • To confirm your identity, you will need:
    • financial account number or
    • mobile phone registered in your name or
    • activation code received by postal mail (takes 5 to 10 business days)

I am a Power of Attorney (POA) applying for an individual:

  • Information to verify your identity (if not already provided)
  • Information for the individual you are representing:
    • Taxpayer's Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
    • Your Centralized Authorization File (CAF) number
    • Caller ID from the taxpayer’s notice or POA's signature date on Form 2848
    • Taxpayer's last year's Adjusted Gross Income (if 2018 was recently filed, then use 2017's AGI)
    • Based on the type of agreement requested, you may also need the balance and/or the tax year filed or examined

I am applying as a business:

  • Information to verify your identity as an individual (if not already provided)
  • Your Employer Identification Number (EIN)
  • Date the business was established (MM/YYYY)
  • Address from most recently filed tax return
  • Your Caller ID from notice
  • Based on the type of agreement requested, you may also need:
    • Balance due amount
    • Tax form filed or examined
    • Tax period filed or examined

I am a Power of Attorney (POA) applying for a business:

  • Information to verify your identity (if not already provided)
  • Taxpayer's Employer Identification Number (EIN)
  • Your Centralized Authorization File (CAF) number
  • Caller ID from the taxpayer's notice or POA's signature date on Form 2848
  • Based on the type of agreement requested, you may also need:
    • Business address of most recently filed tax return
    • Tax form filed or examined
    • Tax period filed or examined
    • Balance due amount

What if I can't log in to see my payment plan or apply for one?

If you are unable to verify your identity with a financial account number or cell phone in your name, in most cases you will have the option of receiving an activation code by mail. You can then complete the registration and log in to view your payment plan or request an initial payment plan online.

If you did not receive the letter option for online access but you received an urgent IRS notice about a balance due or problem with your payment plan, please call us at 800-829-1040 (individual) or 800-829-4933 (business).

What if I am not eligible to apply online for a payment plan or make changes online?

If you are ineligible for a payment plan through the Online Payment Agreement tool, you may still be able to pay in installments.

If you are unable to revise an existing installment agreement online, call us at 800-829-1040 (individual) or 800-829-4933 (business). If you have received a notice of default and cannot make changes online, follow instructions listed on the letter and contact us right away.

How do I review my payment plan?

You can view details of your current payment plan (type of agreement, due dates, and amount you need to pay) by logging into the Online Payment Agreement tool.

What can I change with my payment plan online (not paid through a Direct Debit)?

You can use the Online Payment Agreement tool to make the following changes:

  • Change your monthly payment amount
  • Change your monthly payment due date
  • Convert an existing agreement to a Direct Debit agreement
  • Reinstate after default

You must contact us to make a change to an existing Direct Debit agreement.

How do I revise my payment plan online?

You can make any desired changes by first logging into the Online Payment Agreement tool. On the first page, you can revise your current plan type, payment date, and amount. Then submit your changes.

If your new monthly payment amount does not meet the requirements, you will be prompted to revise the payment amount. If you are unable to make the minimum required payment amount, you will receive directions for completing a Form 433-F Collection Information Statement (PDF) and how to submit it.

If your plan has lapsed through default and is being reinstated, you may incur a reinstatement fee.

How do I manage my plan to avoid default?

In order to avoid default of your payment plan, make sure you understand and manage your account.

  • Pay at least your minimum monthly payment when it's due.
  • File all required tax returns on time and pay all taxes in-full and on time (contact the IRS to change your existing agreement if you cannot).
  • Your future refunds will be applied to your tax debt until it is paid in full.
  • Make all scheduled payments even if we apply your refund to your account balance.
  • When paying by check, include your name, address, SSN, daytime phone number, tax year and return type on your payment.
  • Contact us if you move or complete and mail Form 8822, Change of Address (PDF).
  • Confirm your payment information, date and amount by reviewing your recent statement or the confirmation letter you received. When you send payments by mail, send them to the address listed in your correspondence.

There may be a reinstatement fee if your plan goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you received a notice of intent to terminate your installment agreement, contact us immediately. We will generally not take enforced collection actions:

  • When a payment plan is being considered;
  • While a plan is in effect;
  • For 30 days after a request is rejected or terminated, or
  • During the period the IRS evaluates an appeal of a rejected or terminated agreement.