Simple payment plans for individual taxpayers

Simple Payment Plans are long-term payment plans available for qualified taxpayers. They don’t require a collection information statement, lien determination, or trust fund recovery penalty determination. More than 90% of individual taxpayers will qualify for a Simple Payment Plan. The IRS recently updated qualifications to include business taxpayers.  The option is offered online (individuals) or when working with an IRS or private collection agency employee.

Generally, how to qualify

All applicants for a Simple Payment Plan must be current with all filing and payment requirements.

Individuals

• $50,000 or less in assessed taxes, penalties, and interest

Businesses

With trust fund taxes:

• $25,000 or less in assessed taxes, penalties, and interest, or
• $50,000 or less in assessed taxes, penalties, and interest for an out-of-business sole proprietorship

Without trust fund taxes:

• $50,000 or less in assessed taxes, penalties, and interest

If you do not qualify for a Simple Payment Plan, you may still qualify for another type of payment plan.

How to apply

To apply for a Simple Payment Plan, sign in to your IRS account (individuals), call us at the number on your notice, or 800-829-1040 (individuals) or 800-829-4933 (businesses), or visit your local Taxpayer Assistance Center (TAC).

Terms

Most taxpayers have up to 10 years to pay off their balance due. However, the longer the payment plan term you choose, the more interest and penalties you will owe.

Payments

You can pay installments on a Simple Payment Plan directly from your bank account with automatic withdrawals for a reduced setup fee, a one-time monthly payment through IRS Direct Pay, or with your debit/credit card, digital wallet, or cash through an approved third-party payment processor.