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Quick answer: If you owe the IRS and can’t pay in full, you can usually set up a payment plan yourself online in about 10 minutes at IRS.gov. If you can pay within 180 days and owe less than $100,000, the plan has no setup fee. If you need longer and owe $50,000 or less, a long-term plan costs $22 to set up online with direct debit. Interest and a reduced late-payment penalty keep running until the balance is paid.
The two IRS payment plans for individuals
| Short-term payment plan | Long-term payment plan (installment agreement) | |
|---|---|---|
| Who qualifies online | Owe less than $100,000 in combined tax, penalties and interest | Owe $50,000 or less in combined tax, penalties and interest, with all required returns filed |
| Time to pay | Up to 180 days | Monthly payments; the IRS’s minimum is generally your balance spread over 72 months, and some plans can run longer |
| Setup fee | $0 | $22 online with direct debit; $69 online with other payment; $107 by phone, mail or in person with direct debit; $178 by phone, mail or in person otherwise |
| Low-income taxpayers | $0 | Fee waived with direct debit; otherwise a reduced $43 fee that may be reimbursed when the plan is completed |
Low-income generally means adjusted gross income at or below 250% of the federal poverty guidelines. You can request the reduced fee on Form 13844 if the online tool doesn’t apply it automatically.
How to set up an IRS payment plan online, step by step
- File every required return first. The IRS won’t approve a plan if you have unfiled returns. If you can’t pay, file on time anyway: the penalty for not filing is far bigger than the penalty for not paying.
- Find your balance. Log in to your IRS Online Account at IRS.gov, or use the amount on your most recent IRS notice.
- Go to the Online Payment Agreement tool (IRS.gov/OPA) and choose to apply as an individual. You’ll verify your identity through ID.me.
- Pick short-term or long-term. Short-term if you can clear it within 180 days; otherwise long-term.
- Choose direct debit if you can. It has the lowest setup fee, and automatic payments make it far less likely you’ll default on the plan.
- Pick a monthly amount and due date. You can pay more than the minimum at any time, which cuts interest.
- Submit. Most online applications get an answer on screen right away.
What a payment plan costs beyond the setup fee
A payment plan stops IRS collection, but it doesn’t stop interest. Two costs keep running until the balance hits zero:
- Interest at the federal underpayment rate (the federal short-term rate plus 3 percentage points, reset each quarter), compounded daily.
- The failure-to-pay penalty, normally 0.5% of the unpaid tax per month. If you filed on time, it drops to 0.25% per month while an installment agreement is in place.
That’s why a short-term plan, or paying the balance down quickly, almost always beats stretching payments out. Paying with a credit card is another option, but card processor fees plus card interest usually cost more than an IRS plan.
If you owe more than $50,000
You can still get a plan, but not through the simple online route. You’ll generally file Form 9465 along with a financial statement (Form 433-F), or call the IRS. Two common moves:
- Pay the balance down below $50,000 so you qualify for the simpler plan without a financial statement.
- Get help. At this size, mistakes on the financial statement can lead to an unaffordable plan or a rejection. A credentialed tax professional (an enrolled agent, CPA or tax attorney) may be worth it here.
Want someone else to prepare it?
Setting up a plan online yourself is usually the cheapest route. Two services handle it if you’d rather not:
97tax: payment plan paperwork done for you
97tax prepares and files your IRS payment plan application for a one-time fee. Its site says applications take about 10 minutes and the packet is prepared within one business day. Your monthly payments still go directly to the IRS. You pay 97tax for convenience, not access: the same plan is available free or for a small IRS fee on IRS.gov.
Affiliate link: we may earn a commission if you sign up through it, at no extra cost to you.
Community Tax: for larger or complicated tax debt
If you owe a large balance, have unfiled years, or are already facing a levy or wage garnishment, Community Tax is a tax resolution firm with CPAs, enrolled agents and tax attorneys. The first consultation is free, and investigations are a flat fee. Ask for full pricing in writing before you agree to resolution work.
Affiliate link: we may earn a commission if you sign up through it, at no extra cost to you.
Avoid owing next year
Most people who end up on payment plans owe because nothing was withheld from part of their income, usually self-employment or side-gig income. Paying quarterly estimated taxes is the fix. If you’re self-employed, our 1099 vs. W-2 guide explains why the bill shows up in April.
For other options, including penalty relief and Offers in Compromise, see what to do if you owe the IRS and our guide to tax relief companies.
Frequently asked questions
Does an IRS payment plan hurt your credit?
The IRS doesn’t report payment plans to the credit bureaus. A federal tax lien is a separate matter: the IRS can file one when you owe a large balance, and a plan set up early can help you avoid one.
Can I change my payment plan later?
Yes. You can generally change your monthly amount or due date through the Online Payment Agreement tool, and a revision fee may apply.
What happens if I miss a payment?
Your plan can default, and the IRS can resume collection. Contact the IRS right away if you can’t make a payment. Direct debit is the simplest way to avoid missing one.
Do I need a tax professional to set up a payment plan?
Not usually. Most people who owe $50,000 or less can do it online themselves. Help makes more sense for large balances, unfiled years, or if the IRS has already started levies.
Fees and thresholds are from the IRS fee schedule for individuals as of October 2026. This is general information, not tax advice. Last updated October 27, 2026.