Can't Pay the IRS in Full? Get an IRS Payment Plan
Every month you wait adds interest and penalties, and a licensed tax pro can set up your plan today.
Call a tax pro now(866) 627-6913
We pick up 24/7, review what you owe for free, and start your plan today.
Example: $12,000 over 36 months
$388 a month You pay about $13,968 in all, $1,968 more than the balance. The math holds today's 7% IRS rate, adds the 0.25% monthly penalty and the $29 setup fee. If the IRS changes its rate, the total changes too.How this number is worked out
At $388 a month for 36 months, a licensed tax pro can tell you today if a shorter plan costs less.
What does a payment plan cost each month?
Interest runs at 7% a year, compounded daily. The late-payment penalty is 0.5% a month, cut to 0.25% while an approved plan is in place. A one-time setup fee comes on top, and the table below lists each one.
Maria owes $9,400 for 2025 and filed on time. At about $337 a month she clears it in 32 months and pays about $1,384 more than the bill. Stretch the same bill to 72 months and the extra grows to about $3,200.
| How you pay each month | Apply online | Phone, mail or in person |
|---|---|---|
| Automatic withdrawal from checking | $29 | $107 |
| You send each payment yourself | $69 | $178 |
| Short-term plan, 180 days or less | $0 | $0 |
Which plan fits what you owe?
The IRS sorts plans by the size of your balance, with tax, penalties and interest all counted. The IRS says more than 90% of individuals qualify for its Simple Payment Plan.
Most plans can run up to 10 years, the time the IRS has to collect. A licensed tax pro matches your balance to the right IRS installment plan on the call.
| You owe | Plan | Online? |
|---|---|---|
| Any amount paid in 180 days | Short-term plan, no setup fee | Yes, under $100,000 |
| $10,000 or less in tax | Approved automatically, paid within 3 years | Yes |
| $50,000 or less in total | Simple Payment Plan, monthly | Yes |
| Over $50,000 | Plan with a financial statement | No, phone or mail |
How do you set up an IRS payment plan?
The first step is a call to a licensed tax pro, who checks your balance and picks the plan before you apply. Then come five steps, and the tax pro walks you through each one.
Every detail is on our step by step setup guide.
- File every tax return you owe, even late ones.
- Sign in or create an IRS Online Account, with a photo ID ready.
- Pick a plan, a monthly amount and a payment day from the 1st to the 28th.
- Add your bank routing and account numbers for the $29 automatic option.
- Submit the request, and the answer on your IRS payment agreement shows on the screen.
What if you can't afford a monthly payment?
If even the smallest payment leaves you short on rent, food or utilities, a monthly plan is the wrong tool. The IRS can pause collection for hardship, but you still owe the full amount and interest keeps adding up.
Some people settle for less with an offer in compromise, which carries a $205 fee. A tax pro finds the cheaper path, especially if you owe over $25,000 or have unfiled years. See what to do if you can't pay.
What does your IRS letter say you owe?
The IRS sends a CP14 notice first, with each tax year and the amount due by a set date.
Paste the letter text below and see each year, each amount and which plan limit applies. A licensed tax pro can check the result with you on a free call.
IRS letter reader
Works with a CP14, CP501, CP503, CP504 or a balance statement.
Frequently asked questions
How much will the IRS accept for payment plans?
Online, any amount that clears the balance before the IRS time limit to collect, which is usually 10 years. If your number is too low, the system asks for a financial form instead. A bigger payment means less interest.
How hard is it to get a payment plan with the IRS?
For most people it is a form, not a fight. The IRS says more than 90% of individuals qualify for its Simple Payment Plan. You need to have filed every return and owe $50,000 or less.
What disqualifies you from an IRS payment plan?
Unfiled returns are the usual reason, and an open bankruptcy case also blocks a plan. Owing more than $50,000 does not disqualify you, but it moves you off the online form. A tax pro can get you past both on a free call.
What if I owe the IRS but can't afford to pay?
Ask for a pause. If paying would leave you short on rent, food or utilities, the IRS can mark you as unable to pay for now. You still owe the money and interest keeps adding up.
How long does it take for the IRS to approve an installment agreement?
Online, you get the answer as soon as you submit. By mail, the IRS usually tells you within 30 days whether the request is approved.
Is it a good idea to do a payment plan with the IRS?
It is better than not paying, and the late-payment penalty drops by half while you are on a plan. The IRS will not take money from your bank while the plan is in place. Paying sooner is still cheaper.
What to do now: call before the next notice
Every month the balance stays open adds 7% yearly interest and up to 0.5% in penalties. If you ignore a levy notice for 10 days, the penalty rises to 1% a month. Call now, and a licensed tax pro reviews your balance for free and sets up the right plan today.