You should apply for a payment plan if. You must keep up with all filing and payment requirements, including penalties and projected interest on the tax debt, and pay the full amount within six years (72 months) and within collection law, that is, the time the IRS has to collect the amount you owe. If you are a low-income taxpayer, you will not be charged the user fee if you agree to make direct debit payments through an installment direct debit agreement (DDIA). If you default on missed payments, the installment agreement may be terminated and the IRS may begin taking enforcement action.
In fact, the IRS reminds people who can't pay their federal taxes in full that they can resolve their outstanding obligations by entering into a monthly payment agreement. When you apply for a payment plan (installment agreement), with certain exceptions, the IRS is generally prohibited from collecting taxes and the IRS's time to collect is suspended or extended while an installment agreement (IA) is pending. If you are unable to make the required minimum payment amount, you will receive instructions to complete Form 9465 Request for Installment Agreement in PDF and Form 433-F Collection Information Statement in PDF. A request for an installment agreement is usually pending until it is reviewed and established, or you withdraw the request or the IRS rejects it.
Taxpayers who are struggling should contact an IRS representative by calling the number on the notice of their agreement. If the IRS system identifies you as a low-income taxpayer, the online payment agreement tool will automatically reflect the applicable rate. If you are a low-income taxpayer but are unable to make electronic debit payments when you sign up for a DDIA, your user fee will be refunded once you complete the installment agreement. Most taxpayers will qualify to apply for a payment plan or installment agreement online without needing to call or write to the IRS.
An IRS payment plan is an agreement that you make directly with the agency to pay your federal tax bill for a specified period of time. The Office of Management and Budget has directed federal agencies to charge users fees for services such as the installment agreement program. You can request a routine installment agreement by mail or by calling the IRS, but you can't apply online. File all required tax returns on time and pay all taxes in full and on time (contact the IRS to change your current agreement if you are unable to do so).
Pay by direct debit (automatic monthly payments from your checking account), also known as an installment direct debit agreement (DDIA).