How to set up an IRS payment plan, step by step

Before you set up an IRS payment plan

Knowing how to set up an IRS payment plan is mostly about preparation. The application itself takes minutes online, but it fails if a return is missing, if the balance is not on your account yet, or if the monthly amount you offer is below what the IRS will accept.

1. File every required return. Individuals must be current on filing to get an installment agreement. If a year is missing, file it before you apply, even if you cannot pay that year's tax.
2. Confirm the balance. Your IRS Online Account shows the amount owed by tax year. If you just filed and have not received a bill, use the balance due shown on your return.
3. Pick a plan type. Under $100,000 and payable within 180 days points to a short-term plan. Otherwise you need a monthly installment agreement.
4. Work out a monthly amount you can keep paying. For a streamlined plan it must clear the assessed balance within 72 months. On $24,000, that means at least $333.34 a month.
5. Choose a payment day. The IRS lets you pick any day from the 1st to the 28th; choose one a few days after your paycheck lands so the payment never bounces.

Worked example: which plan to request

Say your 2026 return shows $8,000 due and you can set aside $1,500 a month. You would clear it in about six months, so ask for the short-term plan: no setup fee, and no fixed schedule to default on. If you could only manage $400 a month, the payoff would take about 20 months, so you need a monthly installment agreement, which costs $29 online with direct debit.

If your adjusted gross income is at or below 250% of the federal poverty guidelines, the IRS treats you as low-income. The direct debit setup fee is then waived, and the $43 fee for other payment methods may be reimbursed once the plan is completed under the IRS conditions. The test uses your adjusted gross income for the most recent tax year the IRS has on file.

How to set up an IRS payment plan online

Applying online is the fastest and cheapest way to set up a tax payment plan with the IRS. The Online Payment Agreement tool is available to individuals, including sole proprietors and independent contractors, who owe $50,000 or less for a long-term plan or under $100,000 for a short-term plan.

1. Go to the Online Payment Agreement page on IRS.gov and sign in to your IRS Online Account. First-time users create the account and verify identity with a photo ID.
2. Review the balances the tool shows. If a recently filed return is not listed, enter the balance due from that return when asked.
3. Choose short-term (180 days or less) or a monthly plan.
4. For a monthly plan, enter your payment amount and the day of the month you want to pay.
5. Choose how you will pay. Direct debit from a bank account costs $29; other payment methods cost $69.
6. Submit. The tool tells you immediately whether the plan is approved. Save or print the confirmation page.

A closer look at the tool, including how to revise a plan later, is on our Online Payment Agreement page.

How to revise an IRS payment plan online

You can revise an IRS payment plan online whenever the original terms no longer fit. A raise might let you pay more and finish sooner; a job loss might mean asking for a smaller payment. Either way, fix it before you miss a month, not after.

1. Sign in to the Online Payment Agreement tool with your IRS Online Account.
2. Open your existing plan and choose to revise it.
3. Enter the new monthly amount, a new due date, or both. For a streamlined plan, the new amount still has to clear the balance within 72 months.
4. To switch to automatic payments, choose direct debit and enter your routing and account numbers.
5. Confirm the change and pay the $6 revision fee if one applies. Save the confirmation.

Example: lowering a payment

Suppose you owe $18,000 and have been paying $600 a month. Dropping to $300 would still clear the balance in 60 months before interest, inside the 72-month limit, so the tool can accept it. Dropping to $200 would take 90 months, which falls outside a streamlined plan and pushes you to the phone and a financial statement.

IRS online payment agreement login and identity verification

The OPA login runs through your IRS Online Account. First-time users create that account and prove their identity with a photo ID; after that, the same sign-in reaches your balance, payment history and payment plan. There is no separate username for the payment plan tool.

• Tool will not open: check the time. The application is available only from 5 a.m. to midnight Eastern.
• Identity check fails: make sure the name on your photo ID matches your tax records, and use a phone that can receive the verification code.
• Signed in, but no balance shows: if you filed recently and have no bill yet, the tool asks for the balance due from your return.
• Signed in, but blocked from applying: usually a missing return, a balance over the limit, or a business account.

If you cannot get past identity verification at all, you can still apply by phone or with Form 9465. Our Form 9465 instructions explain the paper request line by line.

When you have to apply offline instead

The online tool covers the simple cases. Anything that needs a human decision, such as a large balance or a payment below the streamlined minimum, goes through the phone, a Taxpayer Assistance Center or the mail.

• You owe more than $50,000 and need a monthly plan.
• You are applying for a business account.
• You cannot afford the minimum payment the tool requires.
• You want a partial payment installment agreement, which requires a financial statement.

For a comparison of every route, including fees and timing, see how to set up an IRS payment plan. The wider picture of plan types and costs is in our IRS payment plan guide.

How to set up an IRS payment plan by phone or in person

Use the phone when the online tool will not take your case: a balance over $50,000, a business account, or a monthly amount too low for the tool to accept. Call the number printed on your most recent IRS notice; if you have no notice, IRS.gov's payment plan page lists the individual line. You can also book an appointment at a Taxpayer Assistance Center.

Have your notice, your last filed return and your bank details in front of you. If you owe more than $50,000, expect the IRS to ask about income, living expenses and assets, often using Form 433-F, Collection Information Statement. Our walkthrough of Form 433-F shows how each line is filled in.

Setup fees are higher by phone or in person: $107 with direct debit and $178 with other payments. A short-term plan remains free however you request it.

Applying by mail with Form 9465

Form 9465, Installment Agreement Request, is the paper route. You can attach it to the front of your tax return when you file, or send it alone to the IRS address for your state. Do not use it if you can pay in full within 180 days or if you prefer to apply online.

• Balance over $50,000: attach Form 433-F.
• Balance of $25,001 to $50,000: agree to direct debit or payroll deduction, or attach Form 433-F if your proposed payment is below the amount the form calculates and you cannot raise it.
• Payroll deduction plans also need Form 2159, completed with your employer.

Line-by-line help is in our Form 9465 instructions guide, and mailing addresses by state are on where to mail Form 9465.

How long it takes to set up an IRS payment plan

Online requests are decided on screen. Phone and in-person timing depends on the case, and balances over $50,000 take longer because the IRS reviews your financial statement first. A mailed Form 9465 usually gets an answer within 30 days, but requests for tax on returns filed after March 31 can take longer.

While a request is pending, the IRS generally cannot levy for that debt. Keep paying what you can in the meantime; anything paid before approval reduces the interest that builds. The full fee schedule, including low-income waivers, is on IRS payment plan fees.

After approval: payments and reminders

Approval is the start, not the finish. The plan stays in place only while you pay at least the minimum each month and file and pay future taxes on time. A new balance next April can break the plan just as surely as a skipped payment.

• If you did not choose direct debit, pay each month through IRS Direct Pay or your online account. Direct Pay is free, and a scheduled payment can be changed or canceled up to two business days before its date.
• Pay every month, even in refund season. The IRS will take future refunds and apply them to the debt, but that does not replace the scheduled payment.
• Adjust withholding or estimated payments so your next return does not create a new balance you cannot pay.
• Watch your mail. A CP523 notice means the IRS plans to end the plan; you have about 30 days to respond.

To see how the whole plan fits together, including penalty rates and what the plan protects you from, return to our IRS payment plan guide.