- What are the benefits of paying my taxes on time?
- What is a payment plan?
- What are payment plan costs and fees?
- Why do I owe interest and penalties?
- Why do I have to pay a setup fee?
- Am I eligible for a waiver or reimbursement of the user fee?
- How do I determine if I qualify for Low Income Taxpayer Status?
- How do I check my balance and payment history?
- Am I eligible to apply online for a payment plan?
- What if I am not eligible to apply online for a payment plan?
- How do I review my payment plan?
- What can I change with my payment plan online (not paid through a direct debit)?
- How do I revise my payment plan online?
- How do I manage my plan to avoid default?
What are the benefits of paying my taxes on time?
By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.
If you're not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There's also a penalty for failure to file a tax return, so you should file timely even if you can't pay your balance in full. It's always in your best interest to pay in full as soon as you can to minimize the additional charges.
Benefits
- Avoid accruing additional interest and penalties
- Avoid offset of your future refunds
- Avoid issues obtaining loans
If you can't pay the full amount due, pay as much as you can and visit http://www.irs.gov/payments to consider our online payment options.
Here are important facts that you should know: Important Facts about Filing Late and Paying Penalties
What is a payment plan?
A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame. If you qualify for a short-term payment plan you will not be liable for a user fee. Not paying your taxes when they are due may cause the filing of a Notice of Federal Tax Lien and/or an IRS levy action. See Publication 594, The IRS Collection Process (PDF).
What are payment plan costs and fees?
If the IRS approves your payment plan (installment agreement), one of the following fees will be added to your tax bill. Changes to user fees are effective for installment agreements entered into on or after April 10, 2018. For individuals, balances over $25,000 must be paid by direct debit. For businesses, balances over $10,000 must be paid by direct debit.
Apply online through the Online Payment Agreement tool or apply by phone, mail, or in-person at an IRS walk-in office by submitting Form 9465, Installment Agreement Request.
| Plan Option | Costs |
|---|---|
Pay now (Pay in full the amount you owe in one payment)Pay amount owed in full today by automatic payment from your checking account or by check, money order or debit/credit card. Fees apply when paying by card. |
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Short-term payment plan (120 Days or Less)Pay amount owed by automatic payment(s) from your checking account or by check, money order or debit/credit card. Fees apply when paying by card. |
|
Long-term payment plan (installment agreement) (paying in more than 120 days through automatic withdrawals)Pay amount owed through direct debit (automatic payments from your checking account). Also known as a Direct Debit Installment Agreement (DDIA). |
|
Long-term payment plan (installment agreement) (paying in more than a 120 days)Pay amount owed using a different -- non-Direct Debit -- electronic method of payment such as Direct Pay or debit/credit card. May also pay by check or money order. Visit the Payments page to view all payment options. Fees apply when paying by card. |
|
Change an existing payment plan: Restructure or reinstate |
|
Note: If making a debit/credit card payment, processing fees apply. Processing fees go to a payment processor and limits apply.
Why do I owe interest and penalties?
Interest and some penalty charges continue to be added to the amount you owe until the balance is paid in full. Learn more about penalties and interest.
Why do I have to pay a setup fee?
The Office of Management and Budget has directed federal agencies to charge user fees for services such as the Installment Agreement program. The IRS utilizes the user fees to cover the cost of processing installment agreements.
Am I eligible for a waiver or reimbursement of the user fee?
Waiver or reimbursement of the user fees only applies to individual taxpayers with adjusted gross income, as determined for the most recent year for which such information is available, at or below 250% of the applicable federal poverty level (low-income taxpayers) that enter into long-term payment plans (installment agreements) on or after April 10, 2018. If you are a low-income taxpayer, the user fee is waived if you agree to make electronic debit payments by entering into a direct debit installment agreement (DDIA). If you are a low-income taxpayer but are unable to make electronic debit payments by entering into a DDIA, you will be reimbursed the user fee upon the completion of the installment agreement. If the IRS system identifies you as a low income taxpayer, then the Online Payment Agreement tool will automatically reflect the applicable fee.
How do I determine if I qualify for Low Income Taxpayer Status?
If you believe that you meet the requirements for low income taxpayer status, but the IRS did not identify you as a low-income taxpayer, please review Form 13844: Application for Reduced User Fee for Installment Agreements (PDF) for guidance. Applicants should submit the form to the IRS within 10 days from the date of their installment agreement acceptance letter to request the IRS to reconsider their status.
Internal Revenue Service
PO Box 219236, Stop 5050
Kansas City, MO 64121-9236
How do I check my balance and payment history?
You can view your current amount owed and payment history by viewing your tax account. Viewing your tax account requires identity authorization with security checks. Allow one to three weeks (three weeks for non-electronic payments) for a recent payment to be credited to your account.
Am I eligible to apply online for a payment plan?
Your specific tax situation will determine which payment options are available to you. Payment options include full payment, short-term payment plan (paying in 120 days or less) or a long-term payment plan (installment agreement) (paying in more than 120 days).
If you are an individual, you may qualify to apply online if:
- Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns.
- Short-term payment plan: You owe less than $100,000 in combined tax, penalties and interest.
If you are a business, you may qualify to apply online if:
- Long-term payment plan (installment agreement): You have filed all required returns and owe $25,000 or less in combined tax, penalties, and interest.
If you are a sole proprietor or independent contractor, apply for a payment plan as an individual.
What if I am not eligible to apply online for a payment plan?
If you are ineligible for a payment plan through the Online Payment Agreement tool, you can still pay in installments.
- Complete and mail Form 9465, Installment Agreement Request (PDF) and Form 433-F, Collection Information Statement (PDF);
- Call 800-829-1040 or the phone number on your bill or notice
How do I review my payment plan?
You can view details of your current payment plan (type of agreement, due dates, and amount you need to pay) by logging into the Online Payment Agreement tool.
What can I change with my payment plan online (not paid through a direct debit)?
You can use the Online Payment Agreement tool to make the following changes:
- Change your monthly payment amount
- Change your monthly payment due date
- Convert an existing agreement to a direct debit agreement
- Reinstate after default
You must contact us to make a change to an existing plan that makes payments through direct debit.
How do I revise my payment plan online?
You can make any desired changes by first logging into the Online Payment Agreement tool. On the first page, you can revise your current plan type, payment date, and amount. Then submit your changes.
If your new monthly payment amount does not meet the required payment amount, you will be prompted to revise the payment amount. If you are unable to make the minimum required payment amount, you will receive directions for completing a Form 433-F Collection Information Statement (PDF) and how to submit it.
If your plan has lapsed through default and is being reinstated, you may incur a reinstatement fee.
How do I manage my plan to avoid default?
In order to avoid default of your payment plan, make sure you understand and manage your account.
- Pay at least your minimum monthly payment when it's due.
- File all required tax returns on time and pay all taxes in-full and on time (contact the IRS to change your existing agreement if you cannot).
- Your future refunds will be applied to your tax debt until it is paid in full.
- Make all scheduled payments even if we apply your refund to your account balance.
- When paying by check, include your name, address, SSN, daytime phone number, tax year and return type on your payment.
- Contact us if you move or complete and mail Form 8822, Change of Address (PDF).
- Confirm your payment information, date and amount by reviewing your recent statement or the confirmation letter you received. When you send payments by mail, send them to the address listed in your correspondence.
There may be a reinstatement fee if your plan goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you received a notice of intent to terminate your installment agreement, contact us immediately. We will generally not take enforced collection actions:
- When a payment plan is being considered;
- While a plan is in effect;
- For 30 days after a request is rejected or terminated, or
- During the period the IRS evaluates an appeal of a rejected or terminated agreement.