Information For...

For you and your family
Standard mileage and other information

Forms and Instructions

Individual Tax Return
Itemized Deductions
Application for Automatic Extension of Time
Request for Taxpayer Identification Number (TIN) and Certification

 

Single and Joint Filers With No Dependents
Employer's Quarterly Federal Tax Return
Employee's Withholding Allowance Certificate
Request for Transcript of Tax Return

Popular For Tax Pros

Amend/Fix Return
Apply for Power of Attorney
Apply for an ITIN
Rules Governing Practice before IRS

Additional Information on Payment Plans

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 we approve your plan, one of the following fees will be added to your tax bill. Changes to user fees are effective Jan. 1, 2017. 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.

Plan Option Costs

Pay now

Paid with automatic payments from your checking account or 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

Short-term payment plan (120 Days or Less)

Paid with automatic payments from your checking account or 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
  • Plus accrued penalties and interest until the balance is paid in full

Long-term payment plan (installment agreement) (paying in more than 120 days through automatic withdrawals)

Paid through direct debit (with automatic payments from your checking account).

  • Apply online: $31 setup fee
  • Apply by phone, mail, or in-person: $107 setup fee ($43 if low income)
  • Plus accrued penalties and interest until the balance is paid in full

Long-term payment plan (installment agreement) (paying in more than a 120 days)

Not paid through direct debit. Can be paid by any other electronic method such as direct pay or debit/credit card. May also be paid by check or money order.

Fees apply when paying by card.

  • Apply online: $149 setup fee ($43 if low income)
  • Apply by phone, mail, or in-person: $225 setup fee ($43 if low income)
  • Plus accrued penalties and interest until the balance is paid in full

Change an existing payment plan: Restructure or reinstate

 

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 Payment Plan (Installment Agreement)program. The IRS utilizes the user fees to cover the cost of processing payment plans (installment agreements).

Am I eligible for a reduced user fee?

Individual taxpayers with income at or below established levels, based on the Department of Health and Human Services poverty guidelines, can apply and be qualified to pay a reduced user fee of $43 for establishing new agreements, $31 for direct debit agreements. If the IRS system identifies you as low income, then OPA will automatically reflect the reduced user fee.

How do I determine if I qualify for a Reduced User Fee?

Form 13844: Application for Reduced User Fee for Installment Agreements (PDF), contains the steps an individual can use to determine if they qualify for a reduced fee. If you are not charged a reduced user fee and you believe you are eligible, submit Form 13844. Qualified applicants should submit the form to the IRS within 10 days from the date of their installment agreement acceptance letter. Please submit the Form 13844 to:

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 balance 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 less than $25,000 in combined tax, penalties, and interest.

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

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

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

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 plan that makes payments through direct debit.

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 required payment amount, 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
  • During the period the IRS evaluates an appeal of a rejected or terminated agreement.