The main IRS phone line for payment plans is 1-800-829-1040

The IRS operates a general customer service line at 1-800-829-1040 where you can discuss payment plan options if you owe back taxes. This is the primary number for individuals. The line is open Monday through Friday, 7 a.m. to 7 p.m. your local time. Wait times are typically shortest early in the morning or late in the week, though this varies by season.

When you call, have your Social Security number, the tax year(s) you owe for, and an estimate of what you owe ready. The representative will ask about your income and expenses to determine what monthly payment you can afford. They can set up a payment plan on the spot if your case is straightforward, though more complex situations may require follow-up by mail.

If you represent a business, the IRS has a separate line: 1-800-829-4933 for business tax matters. The hours are the same. Self-employed individuals and sole proprietors can use either number depending on whether the debt is personal or business income tax.

Key Takeaways

  • Call 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses) Monday through Friday, 7 a.m. to 7 p.m. your local time, to discuss payment plan options.
  • Have your Social Security number, tax year(s), and an estimate of what you owe before you call to speed up the process.
  • The IRS can set up a payment plan immediately by phone if your situation is simple, but complex cases may require documents sent by mail.
  • You can also set up or modify a payment plan online through IRS.gov without calling, which avoids phone wait times entirely.
  • Monthly payments on an IRS payment plan include a setup fee (currently $31 to $225 depending on the method) plus interest and penalties that accrue daily.

What happens when you call about a payment plan

When you reach a representative, they will verify your identity using your Social Security number and date of birth. They will then pull up your tax account to see exactly what years you owe for and the total amount due, including any penalties and interest already added.

The representative will ask about your monthly income and major expenses (housing, utilities, food, transportation, childcare). Based on this, they calculate what you can reasonably pay each month. The IRS does not require you to pay the full amount immediately — they want a sustainable monthly payment that you can actually make.

If you agree to a payment plan, the IRS will explain the setup fee (which varies by payment method), the interest rate (currently the federal rate plus 3 percent, compounded daily), and when your first payment is due. Most payment plans begin within 30 days of approval. You will receive written confirmation by mail within two weeks.

Online alternatives to calling

You can set up or change a payment plan without calling by logging into your IRS account at IRS.gov. Go to "View Your Tax Account" and select "Set Up a Payment Plan." This route is faster than calling and avoids wait times entirely.

The online system works for most straightforward cases: you owe federal income tax, you have filed all required returns, and you are not currently in an audit or collection action. If your situation is more complicated — for example, you owe for multiple years, you are self-employed, or you have an active wage garnishment — you will likely need to call or work with a representative by mail.

The online payment plan tool shows you the exact monthly payment amount before you commit, and you can choose to pay by automatic bank withdrawal (which lowers the setup fee to $31) or by credit card (which adds a processing fee on top of the IRS fee).

Types of payment plans the IRS offers

The IRS offers two main types of payment plans: short-term and long-term. A short-term plan is for amounts under $100,000 that you can pay off within 180 days. These have no setup fee if you pay by automatic bank withdrawal. A long-term plan (called an installment agreement) is for larger amounts or longer repayment periods and does include a setup fee.

Within long-term plans, you can choose a fixed monthly payment amount or an amount based on your income and expenses. A fixed payment is simpler to budget for. An income-based payment adjusts each year based on your reported income, which means your payment could go up or down depending on your tax return.

If you cannot afford even a small monthly payment right now, you can request a temporary delay (called a hardship status). During this time, interest and penalties still accrue, but the IRS will not pursue collection action. This is not a permanent solution — you will eventually need to resume payments — but it can buy time if you are in crisis.

Setup fees and ongoing costs

The IRS charges a setup fee to establish a payment plan. The amount depends on how you pay and your income level. If you set up automatic bank withdrawal (which the IRS prefers), the fee is $31 for most people. If you pay by check, money order, or credit card, the fee is higher — currently $225 for long-term plans, though this can vary.

In addition to the setup fee, you pay interest on the unpaid balance. The interest rate is set quarterly and is currently the federal rate (which changes) plus 3 percent. Interest compounds daily, meaning it accrues on top of itself. You also continue to owe any penalties that were assessed when the debt was created.

If you miss a payment, the IRS may terminate your plan and demand full payment immediately. Missing one payment does not automatically end the plan, but repeated missed payments will. If your plan is terminated, you can request a new one, but you will pay another setup fee.

What to do if you cannot reach anyone by phone

IRS phone lines are often busy, especially during tax season (January through April) and in the weeks before payment deadlines. If you cannot get through after multiple attempts, you have other options.

You can mail a written request for a payment plan to the IRS address shown on your tax notice. Include a copy of the notice, your Social Security number, a brief explanation of why you cannot pay in full, and an offer of what you can pay monthly. Mail it to the address on your most recent IRS notice — this varies by region.

You can also visit a local IRS office in person. Find the nearest one at IRS.gov under "Contact Us." Bring the same documents you would mail: your notice, ID, and a written statement of what you can pay. Walk-in appointments are not always available, so call ahead or check online for hours and whether appointments are required.

Payment plan terms and what happens after approval

Once your payment plan is approved, you will receive a written agreement by mail. This document shows the total amount you owe, your monthly payment, the number of months you have to pay, the setup fee, and the interest rate. Keep this document — you will need it for your records and if you ever need to modify the plan.

Your first payment is usually due within 30 days of approval. You can pay by automatic bank withdrawal (the easiest method and the one that qualifies for the lowest setup fee), by mailing a check, by phone using a debit or credit card, or through the IRS website.

If your financial situation changes — you lose income, get a raise, or face a new hardship — you can request to modify your payment plan. Call the same number you used to set it up, or log into your IRS account online. Modifying an existing plan does not charge a new setup fee, though the IRS may charge a small fee to adjust the terms.

Frequently Asked Questions

How long does it take to set up a payment plan by phone?

The call itself usually takes 15 to 45 minutes, depending on how complex your situation is and current call volume. If your case is straightforward, the plan can be approved during the call. You will receive written confirmation by mail within two weeks, and your first payment is typically due within 30 days of approval.

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

No. You must file all required tax returns before the IRS will set up a payment plan. If you have not filed, contact a tax professional or the IRS to file first. Once your return is filed and processed, then you can call about a payment plan.

What if I cannot afford the monthly payment the IRS suggests?

Tell the representative during the call. The IRS will work with you to lower the payment based on your actual income and expenses. If you truly cannot afford any payment right now, you can request hardship status, which pauses collection action temporarily while interest continues to accrue.

Will setting up a payment plan stop wage garnishment or bank levies?

Setting up a payment plan does not automatically stop an active wage garnishment or levy. However, once you have an approved payment plan in place, you can contact the IRS to request that they release the garnishment or levy. This requires a separate request and is not may provide.

Can I pay off my payment plan early without a penalty?

Yes. You can pay off your plan at any time without penalty. If you pay in full before the plan term ends, you will stop accruing interest on the unpaid balance. There is no fee for early payment.