Taxpayers who cannot pay a tax bill in full can apply for an IRS payment plan to pay in installments.
At a glance
- Enrolling can reduce the risk of IRS collection actions such as levies, though penalties, interest, and potential liens may still apply.
- Both short-term and long-term plan options are available.
- Most plans require a set-up fee; penalties and interest continue to accrue until the balance is paid in full.
Types of payment plans
Simple Payment Plans
A type of long-term plan available to qualified individuals and businesses — more than 90% of individual taxpayers qualify, per the IRS.
- Individuals: $50,000 or less in assessed taxes, penalties, and interest
- Businesses with trust fund taxes: $25,000 or less (or $50,000 or less for an out-of-business sole proprietorship)
- Businesses without trust fund taxes: $50,000 or less
How to apply
Apply for an online payment agreement on the IRS website. Required information: name, email address, home address, birth date, filing status, Social Security number or ITIN, and the balance due for the requested agreement. Business taxpayers should call 800-829-4933 or visit a Taxpayer Assistance Center to apply for a Simple Payment Plan.
How to make payments
Individual taxpayers with a balance between $25,000 and $50,000 must pay through Direct Debit (automatic monthly bank withdrawals). Business payment options vary by tax type and balance; business accounts currently cannot apply online and should call 800-829-4933.
If Direct Debit isn’t required, options include:
- Direct Pay from a checking or savings account
- Electronic Federal Tax Payment System (EFTPS) — requires enrollment
- Check, money order, or debit/credit card (card payments include fees)
Payment plan fees
- Short-term plans (180 days or less): $0 set-up fee; penalties and interest continue accruing until paid in full
- Long-term Direct Debit Installment Agreement: $22 online, $107 by phone/mail/in person; waived for qualifying low-income taxpayers applying online, by phone, or in person
- Long-term plan (not Direct Debit): $69 online, $178 by phone/mail/in person; $43 for qualifying low-income taxpayers (may be reimbursed under certain conditions)
Modifying an existing plan (payment amount, due date, method): $10 online or $89 by phone/mail/in person; $10/$43 for qualifying low-income taxpayers, potentially reimbursed.
Checking your balance
Create an IRS.gov online account and log in via the View Your Account Information page. Recent electronic payments may take one to three weeks to be credited; non-electronic payments up to three weeks. Balances for multiple tax years are shown separately.
The bottom line
Depending on balance and tax situation, a taxpayer may qualify for a short-term plan, a long-term installment agreement, or a Simple Payment Plan. Penalties and interest continue accruing until the balance is paid in full, and some plans carry set-up or revision fees.
This article is for informational purposes only and not legal or financial advice.