A payment plan lets you pay the IRS over time. A short plan gives you up to 180 days with no setup fee. A long plan lets you pay each month. Interest and some penalties keep adding up until you pay it all.
Who it fits
People who can pay the full debt if they get more time.
- Who it fits
- Can pay over time
- Cost
- Short plan: $0 fee, up to 180 days. Long plan: $29 to $178 setup fee, based on how you apply and pay.
- IRS form
- Form 9465, or apply online
What to know first
Pay in 180 days or less. There is no setup fee. Only people, not businesses, can apply online, and only if they owe less than $100,000.
Monthly payments from your bank. The setup fee is $29 online, or $107 by phone, mail or in person.
Pay each month by Direct Pay, card or check. The setup fee is $69 online, or $178 by phone, mail or in person.
If your income is at or below 250% of the poverty line, the fee is waived with auto pay. Without auto pay it is $43, and you may get it back.
While a plan request is pending, the IRS is generally not allowed to levy, with some exceptions.
If you filed on time, the late payment penalty drops from 0.5% to 0.25% a month during an approved plan.
Common questions
Can I set up a plan online?
Often, yes. You may apply online for a long term plan if you owe $50,000 or less and filed all returns. For a short term plan online, you must owe less than $100,000.
What if I owe more than $50,000?
You can still ask for a plan. You may need to apply by phone or mail, and the IRS may ask about your income and bills first.
Source: IRS: Understanding your LT11 notice or Letter 1058 · IRS: Payment plans and installment agreements
Does interest stop on a plan?
No. Interest and some penalties keep adding up until the balance is paid in full.
Can I change my plan later?
Yes. Changing it online costs $6. By phone, mail or in person it costs $89. Changes to a direct debit plan are free.
Results depend on your situation. Not every case qualifies.
