IRS payment plan: pay your tax bill over time, starting today
Your IRS bill grows with penalties and interest daily, so taxpayers in your state who owe $50,000 or less should start an IRS payment plan now.
Call us and a licensed tax pro goes through your bill for free and starts your payment plan today.
We take your call, go through your IRS bill for free, and get your payment plan started right away.
If your total tax, penalties and interest stay at or under this amount, you can set up a long-term plan online.
If you can clear the full bill in 180 days or less, a short-term plan has no setup fee.
A direct debit plan costs $29 online but $107 by phone or mail, so choose automatic bank withdrawals online.
Start your IRS payment plan today
Your IRS balance grows with penalties and interest every month it stays unpaid.
A licensed tax pro for taxpayers in your state picks the right plan and starts setting it up today.
Call now and get your payment plan started.
We take your call, go through your IRS bill for free, and get your payment plan started right away.
Send your notice details to start your plan
Which notices let me set up an IRS payment plan?
Any balance notice does, including CP14, CP501, CP503 and CP504. Final levy notices qualify too. Even after an LT11, a plan can still be set up online if you owe $50,000 or less.
While a plan request is pending, the IRS cannot levy you, except in the cases its payment plan page lists. A CP523 means an existing plan is in default. Call us and our tax pro works to reinstate it.
How is an IRS installment agreement set up?
| Plan | Who can use it | Setup fee |
|---|---|---|
| Short-term (180 days or less). | Owe less than $100,000. | No user fee. |
| Long-term, direct debit. | Owe $50,000 or less, all returns filed. | $29 online, $107 by phone or mail. |
| Direct debit, low income. | Income at or below 250% of the poverty level. | Setup fee waived. |
The plan is set up through the IRS online payment agreement application. You need the notice, your bank routing and account numbers, and a monthly amount you can keep paying.
Form 9465 is the paper request sent by mail, and it costs more than the online route. Penalties and interest keep adding up until the balance is zero.
What will my monthly payment be?
Example$304 a month
Example: $12,000 over 48 months costs about $14,609, with about $2,609 of that in interest and penalty. Enter your own balance and months.
Call now to set up your planHow we figure it: this payment plan calculator uses interest at 7% a year, the rate for individuals in the fourth quarter of 2026. It assumes you filed on time and qualify for the 0.25% monthly failure to pay penalty during an approved plan. It excludes setup fees and existing penalty balances. Actual IRS interest is compounded daily, and the rate can change.
How long can a payment plan run?
The IRS offers Simple Payment Plans for individuals who owe $50,000 or less and are current on filing. These plans give you up to 10 years to pay.
A longer term lowers each payment but adds more interest. Compare the monthly payment and the total cost before you choose a term.
When is a payment plan the wrong move?
- You can pay it all within 180 days. A short-term plan has no user fee, per the IRS payment plan page.
- You cannot pay anything toward the bill right now. Our tax pro can look at hardship status before you sign up for a payment you will miss.
- You could never pay the full balance you owe. Run the offer in compromise check first.
- A single missed payment would break the plan. A defaulted plan brings a CP523 and a 30-day window to fix it.
What to read next
Questions people ask
How much does an IRS payment plan cost to set up?
A long-term plan by direct debit costs $29 online and $107 by phone or mail. Short-term plans have no user fee.
How much can I owe and still apply online?
You can owe up to $50,000 for a long-term plan. A short-term plan of 180 days or less covers balances under $100,000.
Does interest stop on an IRS payment plan?
No. Interest and penalties keep adding up until the balance is paid. The penalty drops to 0.25% a month during an approved plan if you filed on time.
What is Form 9465?
Form 9465 is the paper request for an installment agreement. The online route is faster and costs less.
Can the IRS levy me while my plan request is pending?
No. The IRS is barred from levying while the request is pending, and the exceptions are listed on its payment plan page.
Where this comes from
What to do now
- Call us so a licensed tax pro can go through your notice and options for free.
- Find the total balance and due date on your latest IRS notice.
- Confirm every required return is filed, then choose direct debit so the setup fee is $29 instead of $107.
- Pay every month in full, since penalties and interest run until the balance is zero.
We take your call, go through your IRS bill for free, and get your payment plan started right away.