IRS letter help
Payment plans when a notice comes
You have an IRS bill you cannot pay all at once, and you want to spread it out.
If you owe $50,000 or less and filed every return, you can apply online, and a direct debit plan costs $29 to set up.
Send us your notice through the form to check the amount and plan payments before the due date on your notice.
Which numbers matter?
$50,000
You can apply online for a long-term plan if your total tax, penalties and interest stay at or under that.
Add up the full balance on your latest notice before you apply.
180 days
If you can clear the bill in 180 days or less, a short-term plan has no setup fee.
Pick the short-term plan if you can pay the balance off that fast.
$29
A direct debit plan costs $29 online but $107 by phone or mail.
Apply online and choose automatic withdrawals from your bank account.
Get your payment plan set up right
Your notice prints a due date, and after an LT11 the IRS can levy once 30 days pass.
A plan request sent before then stops most levies while the IRS reviews it, and a licensed tax professional sets a monthly amount you can keep.
Send your notice through the form, or call now and work out a plan before the next notice arrives.
Call 855-964-5291What happens when you call
- You call during business hours and say which letter or bill you have.
- A licensed tax professional asks for the date, the amount and the tax years on the letter.
- You hear your options for this notice and decide what to do. Nothing is filed without your yes.
A licensed tax professional answers, not the IRS. The call costs nothing, and you give up nothing by calling. IRS Code Lookup is a private tax help service.
Would you rather send your notice details?
Your notice shows the exact balance, so sending it lets us check the amount before you pick a plan.
With the real number in hand, a licensed tax professional can talk through a payment plan you can afford.
What changed recently?
Since 2026, the IRS offers Simple Payment Plans for individuals who owe $50,000 or less and are current on filing, with up to 10 years to pay. A longer term lowers each payment but adds interest, so compare the monthly payment and the total cost before you choose.
Source: Simple Payment Plans for individuals and businesses.
Which notices let me set up a plan?
Any balance notice does: CP14, CP501, CP503 and CP504. So do the final levy notices. Even after an LT11, you can still apply 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 to reinstate it.
How do I apply online?
| 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 |
Apply with the online payment agreement application. Have the notice, your bank routing and account numbers, and a monthly amount you can keep paying. Phone applications go to 800-829-1040. Form 9465 is the mail version.
Penalties and interest keep adding up until the balance is zero. These fees are from the IRS payment plan page.
What will my monthly payment be?
Example$304 a month
Example: $12,000 over 48 months costs about $14,609, of which about $2,609 is interest and penalty. Enter your own balance and months.
Have these numbers reviewed before you sign up for a plan: call 855-964-5291.
How we figure it: interest at 7% a year, the rate for individuals in the fourth quarter of 2026. We assume you filed on time and qualify for the 0.25% monthly penalty during an approved plan. See the failure to pay penalty page. This estimate excludes setup fees and existing penalty balances. Actual IRS interest is compounded daily and its rate can change.
When is a payment plan the wrong move?
- You can pay within 180 days. A short-term plan has no user fee.
- You cannot pay anything. Ask about hardship status instead of signing up for a payment you will miss.
- You could never pay it all. Run the offer in compromise check first.
- A missed payment would break it. A defaulted plan brings a CP523 and a 30-day window.
What should you read next?
Questions people ask
How much does an IRS payment plan cost to set up?
A long-term plan by direct debit is $29 online and $107 by phone or mail. Short-term plans have no user fee.
How much can I owe and still apply online?
Up to $50,000 for a long-term plan, and less than $100,000 for a short-term plan of 180 days or less.
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?
It is the paper request for an installment agreement. Applying online is faster.
Can the IRS levy me while my plan request is pending?
No. The IRS is barred from levying while the request is pending; the exceptions are listed on its payment plan page.
Sources
- Payment plans; installment agreements. Published by irs.gov.
- Online payment agreement application. Published by irs.gov.
- Failure to pay penalty. Published by irs.gov.
- Interest rates remain the same for the fourth quarter of 2026. Published by irs.gov.
- Understanding your LT11 notice or letter 1058. Published by irs.gov.
- Simple Payment Plans for individuals and businesses. Published by irs.gov.
Last checked October 2026
What to do now
- Find the total balance and due date on your latest IRS notice.
- Check that you filed every required tax return before you apply.
- Apply online and 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.
Send your notice through the form, or call now and work out a plan before the next notice arrives.
A licensed tax professional answers, not the IRS. The call costs nothing, and you give up nothing by calling. IRS Code Lookup is a private tax help service.