FS-2024-20, June 2024 When taxpayers cannot pay what they owe in full, the Internal Revenue Service provides numerous self-service payment plan options. However, it might be beneficial for taxpayers to explore non-IRS options depending on their financial situation. Regardless of how someone pays, they should act quickly because tax bills get larger as long as they remain unpaid. Online self-service payment plans Most taxpayers qualify for an IRS payment plan (or installment agreement) and can use the online payment agreement (OPA) to set it up to pay off an outstanding balance over time. Once taxpayers complete the online application, they receive immediate notification of whether the IRS has approved their payment plan. The process only takes a few minutes, and there's no paperwork and no need to call, write or visit the IRS. Setup fees may apply for some types of plans. Taxpayers who don't qualify for online self-service should contact the IRS for other payment plan options using the phone number or address on their most recent notice. Individual taxpayers' online payment plan options include: Short-term payment plans – For taxpayers who have a total balance less than $100,000 in combined tax, penalties and interest. This plan gives them an extra 180 days to pay the balance in full. Long-term payment plan (also called an installment agreement) – For taxpayers who have a total balance less than $50,000 in combined tax, penalties and interest. They can make monthly payments for up to 72 months. Taxpayers are encouraged to set up plan payments using direct debit (automatic bank withdraw), which eliminates the need to send a payment each month, saves postage costs and reduces the chance of default. The IRS requires direct debit for balances between $25,000 and $50,000. Business taxpayers' online payment plan options include: Long-term payment plan (also called an installment agreement) – For business taxpayers who have a total balance less than $25,000 in combined tax, penalties and interest from the current and preceding tax year. They can make monthly payments for up to 24 months. Taxpayers can choose to set up payments using direct debit (automatic bank withdraw) and requires it on balances between $10,000 and $25,000. Online tools for payment plans Qualified taxpayers with existing payment plans may be able to use the online payment agreement to make changes to their plans that include revising payment dates, payment amounts or bank information for direct debit payments. Individual taxpayers have the option to sign into or create their own online account. This account allows them to view: The amount they owe. Payment history and any scheduled or pending payments. Payment plan details. Digital copies of select notices from the IRS. Eligible business taxpayers now have the option to use the new tax payment feature in business tax account to make payments toward a balance due. Information on payment eligibility and available payments options can be found at IRS.gov. Find more information about the costs of payment plans on IRS.gov – Additional information on payment plans.
