Yes, you can get on an IRS payment plan if you qualify, which lets you break your tax bill into predictable monthly payments.
Tax debt hits hard when the number on the notice is larger than your cash on hand. The question Can You Get On A Payment Plan With The IRS? comes up fast at that moment. The IRS does offer payment plans, and many taxpayers use them every year to spread out what they owe.
In this guide you will see how IRS payment plans work, who qualifies, the steps to apply, the costs that come with them, and when another option might fit better.
Can You Get On A Payment Plan With The IRS? Basics
The IRS calls payment plans “installment agreements.” Instead of paying everything at once, you send a fixed amount each month until the balance is gone. Interest and penalties keep adding on the unpaid part, yet an approved plan usually stops moves such as levies or wage garnishments as long as you pay on time.
Most individuals use one of two main options:
- Short-term payment plan: You pay the full balance within 180 days.
- Long-term payment plan: You pay in monthly installments that can stretch for years.
Eligibility depends on how much you owe and whether all required returns are filed. In general, individuals can apply online for a short-term plan if total tax, penalties, and interest are under $100,000, and for a long-term plan if that combined balance is $50,000 or less and all returns are on file.
IRS Payment Plan Options At A Glance
The table below shows the most common IRS payment plan choices for individuals. Rules change over time, so check the official IRS payment plan page before you apply.
| Plan Type | Typical Balance Limit (Individual) | General Time To Pay |
|---|---|---|
| Pay In Full | Any amount | Right away by the notice due date |
| Short-Term Payment Plan | Under $100,000 in tax, penalties, and interest | Up to 180 days, no monthly setup fee |
| Long-Term Installment Agreement | Up to $50,000 for online setup | Monthly payments, often up to 72 months |
| Simple Payment Plan (Long-Term) | Most individuals with balances under IRS limits | Monthly payments over the collection period, often near 10 years |
| Direct Debit Installment Agreement | Required for some balances between $25,000 and $50,000 | Monthly payments taken directly from a bank account |
| Business Long-Term Plan | Up to $25,000 for online setup | Monthly payments, usually up to 24 months |
| Non-Streamlined Installment Agreement | Higher balances, often up to $250,000, with extra review | Custom terms based on your finances and collection time limits |
Short-term plans finish fast and avoid a monthly setup fee, while long-term plans stretch payments out and come with more formal terms.
What An IRS Payment Plan Does And Does Not Do
An approved plan brings structure to a stressful tax bill. Once the agreement is in place and you send each installment on time, active collection steps usually pause. The IRS still sends statements, but the process follows a schedule instead of surprise letters and calls.
An installment agreement has limits:
- Penalties and interest keep running on the unpaid balance until everything is paid.
- The IRS can still file a tax lien in some cases, especially when balances are high.
- You must stay current on new filings and payments. New unpaid balances can break the plan.
A payment plan manages tax debt; it does not erase it. You still owe the full amount unless you later qualify for another type of relief such as an offer in compromise.
Getting On A Payment Plan With The IRS Step By Step
Once you see the main choices, the next question after that first shock is how to start. The steps below show the path many individual taxpayers follow when they set up an installment agreement.
Check Your Balance And Filing Status
Before you request a plan, confirm how much you owe and that your tax returns are filed. You can view your balance through an IRS online account or by reading the latest notice. If older returns are missing, the IRS expects you to file them before an installment agreement is approved.
A short budget check also helps. List your net income, fixed bills such as rent and car payments, and a rough number for food, fuel, and other basics. That sketch gives you a starting point for a monthly payment that will not crush the rest of your plans.
Match Your Balance To A Plan Type
Next, line up your balance with the limits in the table above. If you owe under $100,000 and can pay within 180 days, a short-term payment plan may fit. If you need more time and owe $50,000 or less, a long-term installment agreement is usually the next stop.
When balances run higher than the simple limits, the IRS can still work with you, but the process may include more forms, questions about income and expenses, and a closer look at assets. In those cases a tax professional can help with strategy and paperwork.
Apply Online Through The IRS Website
The fastest way to start a payment plan is usually through the IRS Online Payment Agreement tool. You reach it from the main payments area or from your IRS online account. The agency explains each step at the dedicated Online Payment Agreement application page.
To apply online you generally need:
- Access to your IRS online account or ID verification
- Your filing status and the tax year for the balance
- The amount you owe from your notice or return
- Bank account details if you want a direct debit plan
During the online request you choose how much to pay each month and what day of the month works best. The tool may suggest a minimum payment based on your balance and the maximum time allowed.
Apply By Phone Or Mail When Needed
If you do not qualify for online setup, or if you prefer not to create an online account, you can still request a plan by phone or mail. The IRS uses Form 9465, Installment Agreement Request, for many of these cases. You can send the form with a filed return or later in response to a balance notice.
Phone or mail requests often take longer, and the IRS may ask for more detail about your income, expenses, and assets, especially when you owe more than the simple plan limits or ask for a lower monthly payment.
Costs, Penalties, And Interest Under IRS Plans
Payment plans trade time for extra cost. Even after approval, the unpaid balance keeps building interest and late payment penalties. On top of that, many long-term plans charge a setup fee, though online applications and direct debit plans usually cost less than plans set up by mail or with paper checks.
Common IRS Payment Plan Fees
Exact fee amounts shift over time, yet the pattern stays similar. Direct debit plans set up online usually have the lowest setup charge. Plans that allow you to mail checks or pay with a card often carry a higher fee, and card payments also include a separate processing charge from the card vendor.
How Penalties And Interest Work While You Pay
Even with a payment plan in place, the IRS still charges late payment penalties and daily interest on the unpaid balance. A larger balance and a longer payoff period both mean more extra cost over time.
Common IRS Payment Plan Mistakes To Avoid
Many taxpayers qualify for a plan, yet small missteps can make the process harder or lead to default. The table below lists errors that appear often, along with better moves that keep the plan in shape.
| Common Mistake | Why It Causes Trouble | Better Approach |
|---|---|---|
| Waiting months to respond to IRS notices | Penalties grow and collection actions move closer | Read notices quickly and ask for a plan as soon as you know you cannot pay in full |
| Picking a monthly payment that is too high | Cash flow strain increases the chance of missed payments | Choose an amount you can keep paying through slow months and busy seasons |
| Ignoring new tax years while on a plan | New unpaid balances can cause plan default | Adjust withholding or estimated payments so new returns do not add more debt |
| Stopping payments without contacting the IRS | The plan falls apart and collection resumes | Call the IRS early if you need to change the amount or date instead of missing payments |
| Assuming the plan wipes out penalties | Unexpected interest and penalties surprise the household budget | Read the terms so you know how much extra cost will build over the life of the plan |
When An IRS Payment Plan May Not Be Enough
Payment plans help many taxpayers, yet they are not always the best fit. If the debt is so large that even a long-term plan needs a monthly payment beyond your reach, it may be time to look at other tools.
Two common alternatives are an offer in compromise, where you ask to settle for less than the full amount, and currently not collectible status, where the IRS pauses active collection because payments would leave you unable to cover basic living costs. Each choice comes with strict rules, forms, and review of your finances.
If you face a large balance, complex business issues, or liens and levies already in place, you may want help from an enrolled agent, CPA, or tax attorney who spends daily work time on IRS cases. Skilled guidance can help you see whether to stay with a payment plan, adjust the terms, or ask for another type of relief.
Final Thoughts On IRS Payment Plans
So, Can You Get On A Payment Plan With The IRS? In many cases the answer is yes, as long as your returns are filed and your balance falls within the current limits. Short-term and long-term choices give you room to handle a tax bill over time instead of in a single painful lump sum.
The more you know about the plan types, costs, and common mistakes, the easier it is to choose a realistic route. Match your balance and budget to a plan, use the official IRS tools, and reach out for expert help when the numbers grow large. That way your payment plan stays on track and your tax debt moves steadily in the right direction.