You can set up a payment plan with the IRS through their website without calling or visiting an office

The IRS lets you create a payment plan online using the Online Payment Agreement tool on IRS.gov. This tool walks you through the steps to arrange monthly payments on taxes you owe. You need your Social Security number or Individual Taxpayer Identification Number, your filing status, and the tax year in question. The process takes about 15 minutes and you get a confirmation number immediately.

The IRS offers two types of plans through this tool: a short-term payment plan (120 days or fewer) and a long-term installment agreement (more than 120 days). Short-term plans have no setup fee. Long-term plans charge a setup fee that ranges from $31 to $225 depending on how you pay and your income level. The fee is added to your first payment.

You can pay monthly, biweekly, or weekly depending on your paycheck schedule. Payments come out of your bank account automatically on the date you choose. If you miss a payment, the plan can be terminated and you will owe the full balance immediately plus penalties and interest.

Key Takeaways

  • The Online Payment Agreement tool on IRS.gov lets you set up a plan without calling, and you get a confirmation number the same day.
  • Short-term plans (120 days or less) have no setup fee; long-term plans charge $31 to $225 depending on your income and payment method.
  • You choose the payment amount and frequency — monthly, biweekly, or weekly — and payments come directly from your bank account.
  • Missing a payment ends the plan and makes the full balance due immediately, so set up automatic payments to avoid this.

What you need before you start

Have your Social Security number or ITIN, your filing status, and the specific tax year you owe for. You also need a bank account number and routing number if you want to pay by automatic withdrawal — the most common method. If you are setting up a plan for a joint return, both spouses must agree, though only one needs to be present online.

You will also need to know roughly how much you owe. The IRS can tell you this if you log into your account on IRS.gov under "Account" or "View Your Tax Account." If you have not filed yet, you cannot use the online tool — you must file your return first, then set up the plan.

If you owe from multiple tax years, you can include all of them in one plan through the online tool. The IRS will calculate a single monthly payment that covers all years together.

Steps to set up your plan online

Go to IRS.gov and search for "Online Payment Agreement." Click the link to the tool. Enter your Social Security number, filing status, and the tax year. The tool will show you what you owe, including penalties and interest calculated to the current date.

Choose your plan type: short-term (pay in 120 days or less) or long-term (more than 120 days). For short-term, you enter a lump-sum payment date. For long-term, you enter a monthly payment amount. The tool will tell you how long the plan will run based on your payment size.

Select your payment method. Direct debit from your bank account is free and automatic. Credit or debit card payments go through a third-party processor and cost an extra fee (usually $2.50 to $3.95 per transaction). Enter your bank details or card information, then choose the day of the month you want the payment to come out.

Review the agreement terms and submit. You will receive a confirmation number on screen and by email. Write down the confirmation number — you will need it if you contact the IRS later about this plan.

Setup fees and what they cover

Short-term plans have no setup fee. Long-term installment agreements charge a setup fee based on how you pay and your income. If you set up direct debit from your bank account, the fee is $31 for most taxpayers. If you pay by mail, phone, or in person, the fee is $225. Credit card payments through a third-party processor add the processor's fee on top of the IRS fee.

The setup fee is not a monthly charge — you pay it once, usually added to your first payment. If your income is below 250 percent of the federal poverty line, you may be able to request a reduced fee of $31 even if you are not using direct debit. You make this request after you set up the plan by contacting the IRS.

Monthly payment amounts are up to you, but they must be large enough that you pay off the debt within the plan term. The IRS will not let you submit a plan where the math does not work — for example, a $10 monthly payment on a $5,000 debt over 12 months.

What happens after you submit

Your plan becomes active immediately after you submit it online. Your first payment is due on the date you selected. The IRS will send you a notice in the mail within 30 days confirming the plan details, including your monthly payment amount, the number of payments, and the final payment date.

Keep this notice. It shows the IRS considers your account in good standing as long as you make payments on time. If you are audited or contacted by the IRS about something else, this notice proves you have a current agreement.

Penalties and interest continue to accrue on the unpaid balance until you pay it off completely. Your monthly payment covers both principal and interest, but the interest portion changes each month as the balance shrinks. The IRS does not break down the interest in your payment receipt, but you can see the remaining balance anytime by logging into your IRS account online.

Changing or ending your plan

You can modify your plan online if you need to change your payment amount or payment date. Log into your IRS account, find your agreement, and select "Modify." You can increase your payment amount anytime without penalty. Decreasing it may require IRS approval and could extend your plan term.

If you want to pay off the plan early, you can do so without penalty. Send a payment for the full remaining balance, or contact the IRS to arrange a final payment. There is no prepayment penalty.

If you miss a payment, the IRS will send you a notice. You have 30 days to make the payment before the plan is terminated. Once terminated, the full remaining balance becomes due immediately. You can request a new plan, but the IRS may deny it if you have missed payments before.

When the online tool will not work for you

The Online Payment Agreement tool works only if you have filed your tax return. If you have not filed yet, you must file before you can set up a plan. You can file online through IRS.gov or through a tax preparer.

The tool also does not work if you owe taxes from more than six years ago, if you are in bankruptcy, or if you have an existing payment plan that is currently active. If any of these apply, you must call the IRS at 1-800-829-1040 to set up a plan by phone.

If you owe more than $50,000, the online tool may not accept your request. The IRS may require you to submit a financial statement showing your income and expenses before approving a long-term plan for large amounts. In this case, you will be directed to call or mail in an application instead.

Frequently Asked Questions

Can I set up a payment plan if I have not filed my tax return yet?

No. You must file your return first. Once the IRS processes your return and you owe money, you can then set up a plan online. If you are behind on filing, contact a tax preparer or the IRS for help filing before setting up a payment plan.

What happens if I cannot make a payment one month?

Contact the IRS immediately before the payment date. You have 30 days after a missed payment to make it up before the plan is terminated. The IRS may work with you to adjust your payment amount or date, but you must ask before the deadline passes.

Can I pay off my plan early without a penalty?

Yes. There is no penalty for paying early or paying off the full balance at any time. You can send a lump-sum payment whenever you have the money, and it will be applied to your remaining balance.

Do I have to use direct debit, or can I mail checks?

You can set up the plan online with direct debit, then change your payment method later by contacting the IRS. However, paying by mail costs more in setup fees ($225 instead of $31) and takes longer to process. Direct debit is the fastest and cheapest option.

Will setting up a payment plan affect my credit score?

The payment plan itself does not appear on your credit report. However, the original tax debt may already be reported to credit bureaus. Making payments on time can help show you are resolving the debt, but it will not remove the past-due status from your credit history.