What are the benefits of paying my taxes on time? What is a payment plan? What happens when I request a payment plan? What are payment plan costs and fees? Why do I owe interest and penalties? Why do I have to pay a setup fee? Am I eligible for a waiver or reimbursement of the user fee? How do I determine if I qualify for low income taxpayer status? How do I check my balance and payment history? Am I eligible to apply online for a payment plan? What are the browser requirements of the Online Payment Agreement tool? How do I review my payment plan? What can I change with my payment plan online? How do I revise my payment plan online? What if I am not eligible or unable to apply or revise a payment plan online? How do I manage my plan to avoid default? What are the benefits of paying my taxes on time? By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline. If you're not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There's also a penalty for failure to file a tax return, so you should file timely even if you can't pay your balance in full. It's always in your best interest to pay in full as soon as you can to minimize the additional charges. Benefits Avoid accruing additional interest and penalties Avoid offset of your future refunds Avoid issues obtaining loans If you can't pay the full amount due, pay as much as you can and visit IRS.gov/payments to consider our online payment options. What is a payment plan? A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame. If you qualify for a short-term payment plan you will not be liable for a user fee. Not paying your taxes when they are due may cause the filing of a Notice of Federal Tax Lien and/or an IRS levy action. See Publication 594, The IRS Collection Process PDF. What happens when I request a payment plan? When you request a payment plan (installment agreement), with certain exceptions, the IRS is generally prohibited from levying and the IRS’s time to collect is suspended or prolonged while an Installment Agreement (IA) is pending. An IA request is often pending until it can be reviewed, and an IA is established, or the request is withdrawn or rejected. If the requested IA is rejected, the running of the collection period is suspended for 30 days. Similarly, if you default on your IA payments and the IRS proposes to terminate the IA, the running of the collection period is suspended for 30 days. Last, if you exercise your right to appeal either an IA rejection or termination, the running of collection period is suspended by the time the appeal is pending to the date the appealed decision becomes final. Refer to Statutes of Limitations for Assessing, Collecting and Refunding Tax and Tax Topic No. 202 – Tax Payment Options. What are payment plan costs and fees? (updated July 1, 2024) If the IRS approves your payment plan (installment agreement), one of the following setup fees will be charged to cover the cost of providing the payment plan (installment agreement). For individuals who establish a payment plan (installment agreement) online, balances over $25,000 must be paid by Direct Debit. See Long-term payment plan below for other payment options. For businesses who establish a payment plan (installment agreement) online, balances over $10,000 must be paid by Direct Debit. Apply online through the Online Payment Agreement tool or apply by phone or by mail by submitting Form 9465, Installment Agreement Request. Pay now Pay amount owed in full today Payment Method Costs Individuals only: Pay directly from a checking or savings account (Direct Pay) Individuals and businesses: Pay electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required) Pay by check, money order or debit/credit card Fees apply when paying by card Apply online: $0 setup fee Apply by phone, mail, or in-person: $0 setup fee No future penalties or interest Short-term payment plan Pay amount owed in 180 days or less *Note – only individual taxpayers can apply for a short-term payment plan online. Payment method Costs After applying for a short-term payment plan, payment options include: Pay directly from a checking or savings account (Direct Pay) (Individuals only) Pay electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required) Pay by check, money order or debit/credit card Fees apply when paying by card Apply online: $0 setup fee (individuals only) Apply by phone, mail, or in-person: $0 setup fee (up to 180 days) Plus accrued penalties and interest until the balance is paid in full Long-term payment plan (installment agreement) Pay amount owed in monthly payments Payment options Costs Option 1: Pay through Direct Debit (automatic monthly payments from your checking account), also known as a Direct Debit Installment Agreement (DDIA). Apply online: $22 setup fee Apply by phone, mail, or in-person: $107 setup fee Low income: Apply online, by phone, or in-person: setup fee waived Plus accrued penalties and interest until the balance is paid in full Option 2: After applying for a long-term payment plan, payment options include: Make monthly payment directly from a checking or savings account (Direct Pay) (Individuals only) Make monthly payment electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required) Make monthly payment by check, money order or debit/credit card Fees apply when paying by card Apply online: $69 setup fee Apply by phone, mail, or in-person: $178 setup fee Low income: Apply online, by phone, or in-person: $43 setup fee which may be reimbursed if certain conditions are met Plus accrued penalties and interest until the balance is paid in full Change an existing payment plan Payment method Costs Pay through Direct Debit (automatic monthly payments from your checking account), also known as a Direct Debit Installment Agreement (DDIA). Make monthly payment directly from a checking or savings account (Direct Pay) (Individuals only) Make monthly payment electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required) Make monthly payment by check, money order or debit/credit card Fees apply when paying by card Apply (revise) online: $10 fee Apply (revise) by phone, mail or in-person: $89 fee Low income: Apply (revise) online: $10 fee, which may be reimbursed if certain conditions are met Apply (revise) by phone, mail or in-person: $43 fee, which may be reimbursed if certain conditions are met $0 fee for changes made to existing Direct Debit installment agreements Note: If making a debit/credit card payment, processing fees apply. Processing fees go to a payment processor and limits apply. Why do I owe interest and penalties? Interest and some penalty charges continue to be added to the amount you owe until the balance is paid in full. Learn more about penalties and interest. Why do I have to pay a setup fee? The Office of Management and Budget has directed federal agencies to charge user fees for services such as the Installment Agreement program. The IRS utilizes the user fees to cover the cost of processing installment agreements. Am I eligible for a waiver or reimbursement of the user fee? Waiver or reimbursement of the user fees only applies to individual taxpayers with adjusted gross income, as determined for the most recent year for which such information is available, at or below 250% of the applicable federal poverty level (low-income taxpayers) that enter into long-term payment plans (installment agreements) on or after April 10, 2018. If you are a low-income taxpayer, the user fee is waived if you agree to make electronic debit payments by entering into a Direct Debit Installment Agreement (DDIA). If you are a low-income taxpayer but are unable to make electronic debit payments by entering into a DDIA, you will be reimbursed the user fee upon the completion of the installment agreement. If the IRS system identifies you as a low-income taxpayer, then the Online Payment Agreement tool will automatically reflect the applicable fee. How do I determine if I qualify for low income taxpayer status? If you believe that you meet the requirements for low income taxpayer status, but the IRS did not identify you as a low-income taxpayer, please review Form 13844: Application for Reduced User Fee for Installment Agreements PDF for guidance. Applicants should submit the form to the IRS within 30 days from the date of their installment agreement acceptance letter to request the IRS to reconsider their status. Internal Revenue Service PO Box 219236, Stop 5050 Kansas City, MO 64121-9236 How do I check my balance and payment history? Individuals can view the current amount owed and payment history by viewing your Online Account. Viewing your tax account requires identity authorization with security checks. Allow one to three weeks (three weeks for non-electronic payments) for a recent payment to be credited to your account. Am I eligible to apply online for a payment plan? Your specific tax situation will determine which payment options are available to you. Payment options include full payment, short-term payment plan (paying in 180 days or less) or a long-term payment plan (installment agreement) (paying monthly). If you are an individual, you may qualify to apply online if: Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns. Short-term payment plan: You owe less than $100,000 in combined tax, penalties and interest. If you are a business, you may qualify to apply online if: Long-term payment plan (installment agreement): You have filed all required returns and owe $25,000 or less in combined tax, penalties, and interest. If you are a sole proprietor or independent contractor, apply for a payment plan as an individual. What are the browser requirements of the Online Payment Agreement tool? OPA is supported on current versions of the following browsers: Google Chrome Internet Explorer or Microsoft Edge Mozilla Firefox Safari In order to use this application, your browser must be configured to accept session cookies. Please ensure that support for session cookies is enabled in your browser, then hit the back button to access the application. The session cookies used by this application should not be confused with persistent cookies. Session cookies exist only temporarily in the memory of the web browser and are destroyed as soon as the web browser is closed. The applications running depend on this type of cookie to function properly. The session cookies used on this site are not used to associate users of the IRS site with an actual person. If you have concerns about your privacy on the IRS web site, please view the IRS privacy policy. How do I review my payment plan? You can view details of your current payment plan (type of agreement, due dates, and amount you need to pay) by logging into the Online Payment Agreement tool. What can I change with my payment plan online? You can use the Online Payment Agreement tool to make the following changes: Change your monthly payment amount Change your monthly payment due date Convert an existing agreement to a Direct Debit agreement Change the bank routing and account number on a Direct Debit agreement Reinstate after default How do I revise my payment plan online? You can make any desired changes by first logging into the Online Payment Agreement tool. On the first page, you can revise your current plan type, payment date, and amount. Then submit your changes. If your new monthly payment amount does not meet the requirements, you will be prompted to revise the payment amount. If you are unable to make the minimum required payment amount, you will receive directions for completing a Form 433-F, Collection Information Statement PDF or Form 433-B, Collection Information Statement for Businesses PDF and how to submit it. To convert your current agreement to a Direct Debit agreement, or to make changes to the account associated with your existing Direct Debit agreement, enter your bank routing and account number. If your plan has lapsed through default and is being reinstated, you may incur a reinstatement fee. What if I am not eligible or unable to apply or revise a payment plan online? If you are ineligible for a payment plan through the Online Payment Agreement tool, you may still be able to pay in installments. Individuals can complete Form 9465, Installment Agreement Request If required in the instructions, please attach a completed Form 433-F, Collection Information Statement PDF. Mail your forms to us If you prefer to apply by phone, call 800-829-1040 (individual) or 800-829-4933 (business), or the phone number on your bill or notice If you are unable to revise an existing installment agreement online, call us at 800-829-1040 (individual) or 800-829-4933 (business). If you have received a notice of default and cannot make changes online, or you received an urgent notice about a balance due, follow instructions listed on the letter and contact us right away. How do I manage my plan to avoid default? In order to avoid default of your payment plan, make sure you understand and manage your account. Pay at least your minimum monthly payment when it's due. File all required tax returns on time and pay all taxes in-full and on time (contact the IRS to change your existing agreement if you cannot). Your future refunds will be applied to your tax debt until it is paid in full. Make all scheduled payments even if we apply your refund to your account balance. When paying by check, include your name, address, SSN, daytime phone number, tax year and return type on your payment. Contact us if you move or complete and mail Form 8822, Change of Address PDF. Confirm your payment information, date and amount by reviewing your recent statement or the confirmation letter you received. When you send payments by mail, send them to the address listed in your correspondence. There may be a reinstatement fee if your plan goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you received a notice of intent to terminate your installment agreement, contact us immediately. We will generally not take enforced collection actions: When a payment plan is being considered; While a plan is in effect; For 30 days after a request is rejected or terminated, or During the period the IRS evaluates an appeal of a rejected or terminated agreement. Get help Payments Forms, instructions and publications Publication 594, Understanding the Collection Process Payments topics Foreign electronic payments – Tax type codes Electronic payment of user fees EFTPS: The Electronic Federal Tax Payment System
