how to set up payment plan with irs

To set up a payment plan with the IRS, you have several options and steps to follow:

How to Set Up an IRS Payment Plan

1. Online Application (Recommended)

• Create or log into your IRS Online Account. You will need photo identification and your Social Security number or tax ID.
• Use the IRS Online Payment Agreement tool to apply for a payment plan without calling or mailing.
• If applying for a direct debit plan, have your bank routing and account numbers ready.
• The setup fee for applying online is typically $69, but it may be reduced or waived for low-income taxpayers.
• You can choose your monthly payment amount, which must pay off your debt within 72 months.
• Payments can be made via direct debit, online payments, card, phone, mobile device, or check

2. By Phone or Mail

• File Form 9465 (Installment Agreement Request) with the IRS.
• Alternatively, call the IRS at 800-829-1040 (individuals) or 800-829-4933 (businesses) to set up or revise a payment plan.
• The setup fee when applying by phone or mail is higher, around $178, but is also reduced for low-income taxpayers

Eligibility and Types of Payment Plans

• Guaranteed Installment Agreement: For taxpayers owing $10,000 or less, who have filed all returns and paid taxes for the past 5 years, and agree to pay in full within 3 years.
• Streamlined Installment Agreement: For balances up to $25,000 (or up to $50,000 with direct debit), with payments to be made within 72 months.
• Short-term plans (pay in full within 180 days) are also available for debts up to $100,000

Additional Details

• Setup fees vary depending on application method and payment type.
• Debit card payments incur a small processing fee; credit card payments can be about 2% of the amount.
• You can modify your payment plan online to change payment amounts, due dates, or reinstate a plan if behind

Summary Steps to Set Up

1. Verify you have filed all required tax returns.
2. Decide if you want to apply online, by phone, or by mail.
3. Gather necessary information: ID, Social Security number, bank info (if direct debit).
4. Apply through the IRS Online Payment Agreement tool or submit Form 9465.
5. Choose payment amount and method.
6. Await IRS approval and follow the payment schedule.

This process helps manage tax debt by spreading payments over time while avoiding penalties like tax liens