Additional Information on Payment
Plans
1. What are the benefits of paying my taxes on time?
2. What is a payment plan?
3. What happens when I request a payment plan?
4. What are payment plan costs and fees?
5. Why do I owe interest and penalties?
6. Why do I have to pay a setup fee?
7. Am I eligible for a waiver or reimbursement of the user fee?
8. How do I determine if I qualify for Low Income Taxpayer Status?
9. How do I check my balance and payment history?
10. Am I eligible to apply online for a payment plan?
11. What are the browser requirements of the Online Payment Agreement tool?
12. How do I review my payment plan?
13. What can I change with my payment plan online?
14. How do I revise my payment plan online?
15. What if I am not eligible or unable to apply or revise a payment plan online?
16. How do I manage my plan to avoid default?
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 IRS.gov/payments to
consider our online payment options.
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 happens when I request a payment plan?
When you request a payment plan (installment agreement), with certain exceptions, the IRS is
generally prohibited from levying and the IRS’s time to collect is suspended or prolonged
while an Installment Agreement (IA) is pending. An IA request is often pending until it can be
reviewed, and an IA is established, or the request is withdrawn or rejected. If the requested IA is
rejected, the running of the collection period is suspended for 30 days. Similarly, if you default on
your IA payments and the IRS proposes to terminate the IA, the running of the collection period is
suspended for 30 days. Last, if you exercise your right to appeal either an IA rejection or
termination, the running of collection period is suspended by the time the appeal is pending to
the date the appealed decision becomes final. Refer to Tax Topic No. 160 - Statute Expiration
Date and Tax Topic No. 202 – Tax Payment Options.
What are payment plan costs and fees?
If the IRS approves your payment plan (installment agreement), one of the following fees will be
added to your tax bill. Changes to user fees are effective for installment agreements entered into
on or after April 10, 2018. 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 or by mail by
submitting Form 9465, Installment Agreement Request.
Pay Now
Short-term Payment Plan
Long-term Payment Plan (Installment Agreement)
Change an Existing Payment Plan
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 Installment Agreement program. The IRS utilizes the user fees to cover the
cost of processing installment agreements.
Am I eligible for a waiver or reimbursement of the user fee?
:
Waiver or reimbursement of the user fees only applies to individual taxpayers with adjusted
gross income, as determined for the most recent year for which such information is available, at
or below 250% of the applicable federal poverty level (low-income taxpayers) that enter into
long-term payment plans (installment agreements) on or after April 10, 2018. If you are a lowincome taxpayer, the user fee is waived if you agree to make electronic debit payments by
entering into a Direct Debit Installment Agreement (DDIA). If you are a low-income taxpayer but
are unable to make electronic debit payments by entering into a DDIA, you will be reimbursed
the user fee upon the completion of the installment agreement. If the IRS system identifies you
as a low-income taxpayer, then the Online Payment Agreement tool will automatically reflect the
applicable fee.
How do I determine if I qualify for Low Income Taxpayer
Status?
If you believe that you meet the requirements for low income taxpayer status, but the IRS did not
identify you as a low-income taxpayer, please review Form 13844: Application for Reduced User
Fee for Installment Agreements PDF for guidance. Applicants should submit the form to the IRS
within 30 days from the date of their installment agreement acceptance letter to request the IRS
to reconsider their status.
Internal Revenue Service
PO Box 219236, Stop 5050
Kansas City, MO 64121-9236
How do I check my balance and payment history?
Individuals can view the current amount owed and payment history by viewing your Online
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 180 days or less) or a longterm payment plan (installment agreement) (paying monthly).
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 $25,000 or less in combined tax, penalties, and interest.
If you are a sole proprietor or independent contractor, apply for a payment plan as an individual.
What are the browser requirements of the Online Payment
Agreement tool?
:
OPA is supported on current versions of the following browsers:
Google Chrome
Internet Explorer or Microsoft Edge
Mozilla Firefox
Safari
In order to use this application, your browser must be configured to accept session cookies.
Please ensure that support for session cookies is enabled in your browser, then hit the back
button to access the application.
The session cookies used by this application should not be confused with persistent cookies.
Session cookies exist only temporarily in the memory of the web browser and are destroyed as
soon as the web browser is closed. The applications running depend on this type of cookie to
function properly.
The session cookies used on this site are not used to associate users of the IRS site with an actual
person. If you have concerns about your privacy on the IRS web site, please view the IRS Privacy
Policy.
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?
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
Change the bank routing and account number on a Direct Debit agreement
Reinstate after default
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 requirements, 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
or Form 433-B, Collection Information Statement for Businesses PDF and how to submit it.
To convert your current agreement to a Direct Debit agreement, or to make changes to the
account associated with your existing Direct Debit agreement, enter your bank routing and
account number.
If your plan has lapsed through default and is being reinstated, you may incur a reinstatement
fee.
What if I am not eligible or unable to apply or revise a
payment plan online?
If you are ineligible for a payment plan through the Online Payment Agreement tool, you may
still be able to pay in installments.
Individuals can complete Form 9465, Installment Agreement Request
If required in the instructions, please attach a completed Form 433-F, Collection
Information Statement PDF .
Mail your forms to us
If you prefer to apply by phone, call 800-829-1040 (individual) or 800-829-4933 (business), or
the phone number on your bill or notice
If you are unable to revise an existing installment agreement online, call us at 800-829-1040
(individual) or 800-829-4933 (business). If you have received a notice of default and cannot make
changes online, or you received an urgent notice about a balance due, follow instructions listed
on the letter and contact us right away.
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 terminated, or
During the period the IRS evaluates an appeal of a rejected or terminated agreement.
Get Help
Payments
Forms, Instructions and Publications
Publication 594, Understanding the Collection Process
Payments Topics
Understanding Your IRS Notice or Letter
Foreign Electronic Payments
Electronic Payment of User Fees
EFTPS: The Electronic Federal Tax Payment System
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Page Last Reviewed or Updated: 27-Jan-2023