Taxes
How to set up an IRS payment plan
If you owe federal taxes you can't pay in full, the IRS offers installment agreements that let you pay over time. Interest and penalties continue to accrue, but a payment plan prevents enforced collection action.
Last reviewed: June 5, 2026
Steps
File all required tax returns first
The IRS requires you to be current on all filed returns before entering a payment plan. If you have unfiled returns, file them before applying — even if you can't pay the amounts owed.
Determine which plan type you need
There are two main types of IRS installment agreements.
- Short-term payment plan: pay in full within 180 days. No setup fee. Available if you owe $100,000 or less in combined tax, penalties, and interest.
- Long-term installment agreement: pay monthly for up to 72 months. Setup fee $31–$225 depending on income and payment method. Available if you owe $50,000 or less.
Apply online through the IRS Online Payment Agreement tool
The fastest way to apply is at irs.gov/opa (Online Payment Agreement). You'll need your Social Security number or EIN, date of birth, and information from your most recent tax return. You can set up the plan immediately and choose your monthly payment date.
Choose your payment method
You can pay via direct debit from a bank account (lowest setup fee and most reliable), check, money order, or the IRS2Go app. Direct debit agreements have a lower setup fee and reduce the risk of missed payments.
Tip: Using direct debit also reduces your setup fee from $130 to $31 if you apply online (or $107 vs. $225 if applying by phone or mail).
Make payments on time
Missing a payment can default your agreement, triggering collection action. Set up automatic payments to avoid this. The IRS will send monthly balance statements.