Should I request an installment agreement?

If you can't pay the full amount of tax you owe, an IRS installment agreement may help you spread your payments out over time. This guide explains when a payment plan makes sense, how to request one, and what to expect after you apply.

Consider requesting an installment agreement if you're unable to pay the full balance due with your tax return.

Before applying, think about how quickly you can pay off the balance:

Keep in mind that interest and penalties generally continue to accrue until your balance is paid in full.

The amount of time available depends on the type of payment plan you qualify for.

For most taxpayers who qualify for a simplified online installment agreement, the IRS generally allows monthly payments over an extended period. In many cases, taxpayers may have up to the collection statute period, which is typically up to 10 years, to fully pay the balance. 

In some situations, the IRS may approve other arrangements based on your financial circumstances, including payment plans that differ from the standard terms.

You can request a payment plan while filing your tax return or apply separately through one of the following methods:

Setup fees vary depending on the type of payment plan you select and how you apply. Online applications often have lower fees than requests submitted by phone, mail, or in person.

When you complete the Installment Agreement Request form in our software, you'll be able to:

This flexibility can help you create a payment schedule that better fits your budget.

If you request an installment agreement through the program, the IRS will review your application and notify you of its decision.

If approved, you'll generally receive written confirmation from the IRS. Depending on your situation, the IRS may contact you to verify information related to your request or payment arrangement.

When applying directly through the IRS Online Payment Agreement system, eligible taxpayers are often notified immediately whether their payment plan has been approved. 

For the most current details about IRS payment plans, eligibility requirements, fees, and payment options, visit the IRS Payment Plans and Installment Agreements page on IRS.gov.