A payment plan is an agreement with the IRS to pay the taxes you owe within an extended period. You should apply for a payment plan if you think you'll be able to pay your taxes in full within the extended deadline. If you qualify for a short-term payment plan, you are not responsible for any user fees. Use Form 9465 to request a monthly installment plan if you can't pay the full amount you owe listed on your tax return (or in a notice we sent you).
For individuals and businesses (not for payroll tax deposits). For information on payment arrangements, installment agreements, and what happens when you don't take any steps to pay, see Publication 594, IRS Collection Process (PDF). If you're in this situation, you might also consider submitting a transaction offer to settle your taxes instead of an installment agreement. You can request a routine installment agreement by mail or by calling the IRS, but you can't apply online.
If the requested installment agreement is rejected, the collection period is suspended for 30 days. Generally, the IRS will not take enforcement action while the installment agreement is pending and for an additional 30 days after the rejection or termination, giving you time to request an appeal. Finally, if you exercise your right to appeal the rejection or termination of an installment payment agreement, the collection period is suspended from the time the appeal is pending until the date the appealed decision becomes final. Installment agreements using direct debit and payroll deduction allow you to make timely payments automatically and reduce the possibility of default.
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. A transaction offer (OIC) is an agreement between you and the IRS that resolves your tax liability by paying an agreed reduced amount. To request a payment plan, use the OPA application, complete Form 9465 (Request for an Installment Payment Agreement) and mail it to us or call the appropriate telephone number listed below. The initial fee for setting up an installment agreement varies depending on the payment method you choose.
A request for an installment agreement is usually pending until it can be reviewed and an installment agreement is established, or the request is withdrawn or denied. If you default on missed payments, the installment agreement may be terminated and the IRS may begin taking enforcement action. Similarly, if you fail to comply with your installment agreement payments and the IRS proposes to terminate the installment agreement, the collection period will be suspended for an additional 30 days. Installment agreement options are available to taxpayers who can't pay their balance in full, but can pay it over time.
If you are unable or choose not to use the online system, you can complete the paper IRS Form 9465, application for an installment agreement, and send it with all required documents to the address listed in the instructions.
