Do I need to make a payment with my installment agreement?

Yes. If you're requesting an IRS installment agreement to pay your federal tax balance over time, you'll need to make an initial payment of at least $25 when you file your return.

As a general rule, it's smart to pay as much as you can afford upfront. A larger initial payment can help reduce the penalties and interest that continue to accrue on unpaid tax balances.

If you're making a payment when you file your return, be sure to enter the same payment amount in both parts of the e-file process.

When setting up your installment agreement, enter the amount you plan to pay with your return. For example, if you're paying $100, enter $100 here.

Later in the e-file process, you'll be asked to enter your current payment amount. Use the exact same amount you entered when completing your installment agreement.

Important: The payment amount entered in both places must match exactly. If the amounts are different, the IRS may reject your electronically filed return.

After you submit an installment agreement request through our software, the IRS will generally review your request and respond by mail within 30 days of receiving it.

The IRS will notify you whether your request has been approved or denied. If your agreement is approved, the IRS may contact you and ask for financial information or supporting records to verify your ability to make the payments you proposed.

For additional details about IRS installment agreements, visit the IRS installment agreement guidance page.

Even after submitting your request, remember that interest and applicable penalties may continue until your balance is paid in full. Making timely payments and paying more than the minimum whenever possible can help reduce the total cost of your tax debt over time.