Short-term or long-term
Short-term payment plan. You pay the full balance within 180 days. Individuals can apply online if they owe less than $100,000 in combined tax, penalties and interest. There is no setup fee.
Long-term payment plan (installment agreement). You pay monthly. Individuals can apply online if they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns. Sole proprietors and independent contractors apply as individuals.
If you can pay in full within 180 days, a short-term plan is the cheaper choice. Either way, interest and some penalties continue until the balance is paid.
Setup fees
These are the setup fees for individuals on the IRS payment plans page, read on 2026-10-23. The fee depends on how you apply and how you pay, and the IRS updates it from time to time, so older copies of the Form 9465 instructions show different amounts:
- Short-term plan: $0 online, by phone, by mail or in person.
- Long-term plan with direct debit: $29 online; $107 by phone, mail or in person.
- Long-term plan with other payments (check, money order, card): $69 online; $178 by phone, mail or in person.
- Changing an existing plan: $6 online; $89 by phone, mail or in person.
Low-income taxpayers, with adjusted gross income at or below 250% of the federal poverty level, pay no setup fee for a direct debit plan. For other long-term plans the fee is $43 and may be reimbursed. If the IRS did not flag you as low-income, you can ask for a review with Form 13844 within 30 days of your acceptance letter.
Three ways to apply
Online. Sign in to your IRS online account and request the plan. It is the fastest way and has the lowest fees. You need to have filed all required returns.
By phone or in person. Call 800-829-1040 for individuals or 800-829-4933 for businesses, or the number on your notice. Businesses cannot apply online; they call or visit a Taxpayer Assistance Center.
Form 9465, by mail. Use it if you can't or prefer not to apply online. Attach it to the front of your return if you haven't filed yet, or mail it alone, to the address in the Form 9465 instructions, if you already filed or are answering a notice. The IRS usually answers within 30 days. The Form 9465 guide covers each line. If you fill it on your phone in PDF Sign & Fill, your documents are never uploaded.
When you need Form 433-F
Form 9465 alone works for most balances. The instructions ask you to attach Form 433-F, Collection Information Statement, when:
- the total you owe on line 9 is more than $50,000, or
- you can't raise your monthly payment to the amount the form works out for you (there is a box to check for this), or
- the IRS asks for it after reviewing your request.
Between $25,001 and $50,000, a streamlined agreement by mail generally requires direct debit or payroll deduction.
Frequently asked questions
What is the IRS payment plan phone number?
Individuals call 800-829-1040 and businesses call 800-829-4933. If you have a notice, the number on that notice works too.
Can I set up an IRS payment plan online?
Yes, if you are an individual who owes less than $100,000 for a short-term plan or $50,000 or less for a long-term plan, and you have filed all required returns. Businesses must call or visit.
What happens if I miss a payment?
The Form 9465 instructions say you must keep paying and filing future returns on time. If your situation changes, you can revise an existing plan, online for $6 or by phone or mail for $89. Refunds are applied to the balance, and you still owe the regular monthly payment.
Does interest stop while I'm on a payment plan?
No. Interest and some penalties keep accruing until the balance is paid in full. Paying more each month, or paying off early, lowers the total.
Can I ask for a payment plan before I file my return?
Yes, by attaching Form 9465 to the front of your return when you file it. What you can't do is skip a return: the IRS denies a request when required returns haven't been filed. File every missing year first, even if you can't pay with it.
What is Form 9465 used for?
It is the paper request for a monthly installment agreement with the IRS. It is mainly for individuals who owe tax on Form 1040, plus a few other cases its instructions list.
The form guides
Sources
Written from: Payment plans; installment agreements; Instructions for Form 9465 (Rev. July 2024).
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