Tax approved loan agreement

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Station Overview

Payment plans (also referred to as Installment Agreements) are one of your options if you can’t pay your taxes in full when they’re due. Payment plans allow you to pay your debt over a time. You must be current with monthly payments, timely file your tax returns, and make estimated tax payments to qualify for a payment plan. If your payment plan is accepted, you must also remain current on filing and payment obligations while you are on the payment plan. Future refunds will be applied to unpaid taxes until the tax balance is paid in full.

This notice or letter may include additional topics that have not yet been covered here. Please check back frequently for updates.

What does this mean to me?

You have a balance on your tax account and you want to pay the balance within 180 days or via monthly payments to the IRS.

After requesting a payment plan, you may receive notices or letters for the following:

If you are approved for a payment plan and then incur additional balances, fail to make required payments, or fail to file current tax returns, you may receive notices or letter for the following:

It is important that you carefully read the letter or notice you received so you can respond accordingly or call the phone number on the notice or letter immediately if you have questions.

How did I get here?

You have a balance on your tax account and you may want to pay your balance through a payment plan, or have an established payment plan. With an approved payment plan, you agree to stay current with all monthly payments, and all tax filing and payment requirements.

Some Common Types of long-term payment plans, known as Installment Agreements (IA):

Guaranteed Installment Agreements

You have the right to an agreement without submitting a financial statement if:

You can apply for a guaranteed installment agreement online, by phone, or by mail.

Streamlined Installment Agreements

There are two types of streamlined installment agreements, depending on how much and what type of tax you owe. For both types, you must pay the debt in full within 72 months (six years), and within the time limit for the IRS to collect the tax, but you won’t need to submit a financial statement.

You can apply for a streamlined agreement online, by phone, or by mail.

Partial Pay Agreements

In this situation, you must have some ability to pay your taxes but can’t pay in full within the remaining time the IRS has to collect. The IRS may allow you to make payments until this collection period expires for less than the full amount owed. See Partial Payment Installment Agreement for more information.

Routine/Regular Installment Agreements

If you don’t meet criteria for guaranteed or streamlined IAs, you can still request an installment agreement from the IRS. You can request a routine installment agreement by calling the IRS or by mail, but not online. You will need to agree to pay the liability in full before the period for collecting the tax expires. Installment Agreements allow for additional provisions, when warranted:

In-Business Trust Fund Express Agreement

An in-business trust fund express agreement may be available for businesses that owe up to $25,000. You must pay the debt in full in 24 months or before the statutory period to collect expires, whichever is earlier. You can also pay down the liability to $25,000 or less, and then apply.

You can apply for an in-business trust fund express agreement online, by phone, or by mail.

If none of these options seems to fit your circumstances, you can call the IRS and discuss your situation. Call 800-829-1040 (individual) or 800-829-4933 (business), or the phone number on your bill or notice.

What are my next steps?

Before you consider an installment agreement

Review the tax debt to be sure you owe it. If you don’t believe you owe the tax, now is the time to talk to the IRS about it. If you’ve received an IRS notice, start by calling the number on the notice to discuss the amount you owe.

Once you verify that you owe the balance and before you request a payment plan, you should know:

Internal Revenue Service
PO Box 219236, Stop 5050
Kansas City, MO 64121-9236

You may wish to consider other resources before setting up an payment plan. Can you borrow from a financial institution or a family member to pay the balance? If so, it will probably cost you less money since the IRS charges interest and penalties even though you’re on a payment plan. You may also avoid these costs by paying the IRS sooner. Compare the costs for your situation.

How to Apply

Online

The simplest way to get an installment agreement is to use the IRS Online Payment Agreement program. If you meet the criteria. Follow the instructions to see if you qualify. The system will give you an immediate answer. If you don’t qualify for the Online Payment Agreement program, OPA will provide instructions on available alternatives.

By mail

If you can’t or choose not to use the online system, you can complete the IRS Form 9465, Installment Agreement Request, and submit it with all the required documents, and mail it to the address in the instructions.

For a routine installment agreement, you also need to submit another form:

By phone

If you prefer to apply by phone, call 800-829-1040 (individual) or 800-829-4933 (business), or the phone number on your bill or notice.

Fees:

Internal Revenue Service
PO Box 219236, Stop 5050
Kansas City, MO 64121-9236