How to Apply for an IRS Payment Plan

Asking for an IRS payment plan is usually less complicated than people fear. Many people can apply online in one sitting. Others need to call, mail a form, or work with a revenue officer. The right method depends on how much you owe, what kind of plan you need, and whether the IRS has already assigned your case to someone.

This guide walks through the steps in order.

Step 1: Make sure your returns are filed

Before the IRS will approve an installment agreement, you must have filed all required returns and be current on estimated tax payments, withholding or federal tax deposits (IRM 5.14.1.4.2; IRM 5.14.5.1.1). If you have missing years, deal with those first. Our guide on unfiled returns before a payment plan explains why.

Step 2: Find out exactly what you owe

Gather your IRS notices, or check your balance in your IRS Individual Online Account. Note each tax year and the amount. The total matters, because the plan options change at certain dollar amounts:

• Can pay within 180 days: a short-term payment plan, which is not an installment agreement and has no user fee (IRM 5.19.1.6.3; IRM 5.19.1.6.4.6). See short-term payment plans.
• $50,000 or less: a Simple Payment Plan, formerly called a streamlined installment agreement, with no financial statement required if you pay in full by the Collection Statute Expiration Date (IRM 5.14.5.2). See Simple Payment Plans.
• More than $50,000: more documentation and review may be needed (IRM 5.14.1.4; IRM 5.19.1.6.4). See larger payment plans.
• Cannot pay in full before the collection deadline: a partial payment installment agreement, which always requires a full financial statement (IRM 5.14.2).

Not sure where you fit? Read which payment plan you qualify for.

Step 3: Pick a monthly payment you can keep making

Choose a payment you can make every month, not just this month. Missing payments can put the plan into default (Internal Revenue Code section 6159(b); IRM 5.14.11.3). Remember that penalties and interest keep accruing during the plan (IRM 5.14.1.1.1), so a higher payment costs less overall. The payment plan calculator can help you test numbers.

Step 4: Choose how to apply

The IRM lists several ways to request an installment agreement (IRM 5.14.1.2; IRM 5.19.1.6.4):

Method	Best for	Notes
Online Payment Agreement or IRS Individual Online Account	Most individuals who qualify for a short-term plan or Simple Payment Plan	Lowest user fees, lowest of all with direct debit
Form 9465, Installment Agreement Request	People who prefer to apply by mail	Staff-assisted fees apply
Phone	People with questions, or whose balance or situation does not fit the online tool	Use the number on your notice
Responding to a notice or a revenue officer	Cases already assigned to collections	Follow the instructions and deadlines in the letter

Fees are lower online. As of the July 2026 fee schedule, an online plan with direct debit costs $29, while a plan set up with IRS staff without direct debit costs $178 (IRM 5.14.1.2). Fees can change, so confirm on IRS.gov. Our guide to payment plan fees has the full table.

Step 5: Gather what you need

For a Simple Payment Plan, you generally do not need a financial statement (IRM 5.14.5.2). You will still need basic information such as your identity details, the balance you owe, and your proposed payment amount and date. If you want direct debit, have your bank routing and account numbers ready.

If you owe more, or need a partial payment plan, expect to complete a Collection Information Statement. Form 433-H is used for some wage earners (IRM 5.19.1.6.4). Form 433-A is the full statement for individuals, and Form 433-B is for businesses. Businesses should also read payment plans for businesses.

Step 6: Pick how you will pay

The IRS accepts installment payments in several ways, including direct debit from a bank account, the Electronic Federal Tax Payment System (EFTPS), IRS Direct Pay, debit or credit card, and check (IRM 5.14.1.2; IRM 5.19.1.6.4). Two forms come up often:

• Form 433-D, Installment Agreement. This is required when IRS staff set up a direct debit agreement.
• Form 2159, Payroll Deduction Agreement. This lets your employer send payments straight from your paycheck.

Direct debit is not required for a Simple Payment Plan (IRM 5.14.5.2), but it lowers the fee and makes a missed payment less likely.

What happens after you apply

Asking matters even before you are approved. Internal Revenue Code section 6331(k)(2) bars a levy while your installment agreement request is pending, for 30 days after a rejection (and during an appeal filed within that time), and while the agreement is in effect. Short-term plans are different: they are not installment agreements, and installment agreement appeal rights do not apply to them (IRM 5.19.1.6.3).

A few other things to know:

• The collection clock pauses while you wait. The 10-year collection period under section 6502 is suspended while your request is pending and during certain appeals, but not while the agreement is in effect (section 6331(k)(3) and (i)(5); IRM 5.14.1.2).
• Refunds go to your balance. Future federal refunds are applied to what you owe during the agreement, and they do not count as your monthly payment (IRM 5.19.1.6.4.16).
• A lien may still be filed. See payment plans and tax liens.
• Requests made only to delay are not processed. The IRM says requests that are solely to delay collection, such as repeated defaults with no change in circumstances or offers of $1 per month, are not processable and have no appeal rights (IRM 5.19.1.6.4.7.2.1).

If the IRS says no, you usually have appeal rights through the Collection Appeals Program using Form 9423 (IRM 5.14.1.1.5). See what to do if your plan is rejected.

Common mistakes to avoid

• Applying while returns are still unfiled.
• Choosing a payment you cannot keep up.
• Forgetting that new taxes must be paid on time during the plan.
• Ignoring an IRS request for updated financial information.

Getting help

Many people can set up a plan on their own. If you owe more than $50,000, have unfiled years, own a business, or are already dealing with a revenue officer, talk to a tax attorney before you apply. You can reach our office through GetIRSHelp.com or at (813) 229-7100.