You can set up an IRS payment plan online through the IRS website without calling or visiting an office

The IRS offers two online tools to set up a payment plan if you owe federal income tax: the Online Payment Agreement tool and the Short-Term Extension tool. The Online Payment Agreement tool lets you arrange monthly payments over time. The Short-Term Extension tool gives you up to 180 days to pay in full without a monthly payment plan. Both are available at IRS.gov and require no phone call or paperwork to submit.

You can use these tools if you have a balance due on your 2024 tax return or an earlier year, and you have a Social Security Number or Individual Taxpayer Identification Number. The IRS will tell you when ready whether your request was accepted. If you set up a monthly plan, the IRS charges a one-time setup fee that varies by method — it is lower if you pay by direct debit from your bank account than if you pay by credit or debit card.

Key Takeaways

  • The Online Payment Agreement tool at IRS.gov lets you set up monthly payments without calling, and you get an answer the same day.
  • A Short-Term Extension gives you up to 180 days to pay in full, with no monthly payment obligation or setup fee.
  • Setup fees range from $31 to $225 depending on whether you pay by direct debit, card, or other method — direct debit is cheapest.
  • You need your Social Security Number or ITIN, your tax year, and your bank or card details to complete the process online.
  • Monthly payments can be as low as $25, but the IRS sets a minimum based on how much you owe and how long you want to pay.

How to access the Online Payment Agreement tool

Go to IRS.gov and search for "Online Payment Agreement" or navigate directly to the payment agreement section. You will see two options: one for people who have already received a notice from the IRS, and one for people who have not. If you received a notice, you can enter the notice number to speed up the process. If you have not received a notice, you can still set up a plan using your Social Security Number and tax information.

The tool will ask you to verify your identity using either your IRS online account (if you have one) or by answering security questions about your tax history. Once verified, you enter the tax year you owe for, the amount you want to pay each month, and how you want to pay. The entire process takes about 10 to 15 minutes. At the end, the IRS tells you whether your plan was accepted and provides a confirmation number.

Monthly payment plans versus short-term extensions

A monthly payment plan spreads your debt over time with regular payments. The IRS sets a minimum monthly payment based on how much you owe — if you owe less than $2,500, the minimum is usually $25 per month. You can pay more than the minimum at any time without penalty. The plan lasts until your balance is paid off, which could be several years depending on the amount and your payment size. You pay interest and penalties on the unpaid balance each month until it is gone.

A Short-Term Extension gives you 180 days to pay the full amount in one lump sum. There is no setup fee, no monthly payment obligation, and no interest accrual beyond what you already owe. This option works best if you expect to have the money within six months but need time to gather it. If you do not pay in full by day 180, the IRS will contact you about other options.

The choice depends on your cash flow. If you cannot pay the full amount within six months, a monthly plan is necessary. If you can pay within six months but need the time, the Short-Term Extension costs nothing and avoids the setup fee.

Setup fees and payment methods

The setup fee for a monthly payment plan depends on how you pay. If you set up direct debit from your bank account, the fee is $31. If you pay by credit card or debit card, the fee is $225. If you pay by mail or phone, the fee is $225. The Short-Term Extension has no setup fee regardless of payment method.

Once your plan is active, you can change your payment method later, but you may be charged a new setup fee. The IRS deducts the setup fee from your first payment or bills you separately, depending on your payment method. Direct debit is the cheapest option and also the most reliable because payments happen automatically each month on the date you choose.

What happens after you set up your plan online

After the IRS accepts your plan, you will receive a confirmation number on screen and by email if you provided an email address. Keep this number for your records. Your first payment is due on the date you selected during setup, usually within 10 to 30 days. The IRS will send you a notice in the mail confirming the plan details, including your monthly payment amount, due date, and account number.

You can view your plan status anytime by logging into your IRS online account at IRS.gov. The account shows your current balance, payment history, and remaining payments. If you need to change your payment amount or due date, you can modify the plan online through your account or by calling the IRS. If you miss a payment, the IRS will send you a notice and may terminate the plan if you miss payments for more than a few months.

When you cannot use the online tool

The Online Payment Agreement tool works for most people, but some situations require a different approach. If you owe more than $50,000, you cannot use the online tool — you must call the IRS at 1-800-829-1040 or work with a tax professional. If you are in an active installment agreement already and want to modify it, you may be able to do so online, but the process depends on your specific plan.

If you have not filed a tax return for the year you owe, you cannot set up a payment plan until you file. If you are currently in a Collection Due Process hearing or have a wage garnishment in place, contact the IRS before setting up an online plan to understand how it affects your situation. The IRS website will tell you during the setup process if your situation does not may have access to for the online tool.

Frequently Asked Questions

Can I set up a payment plan if I owe from multiple tax years?

Yes. The online tool lets you combine balances from different years into one payment plan. During setup, you will see all years you owe for and can choose to include them all or select specific years. The IRS will calculate one monthly payment that covers all selected years.

What if I cannot afford the minimum monthly payment?

Call the IRS at 1-800-829-1040 to discuss a lower payment or other options. The online tool has a minimum, but the IRS can sometimes work with you on the phone if you have financial hardship. You may also be able to request a temporary pause on payments or explore an offer in compromise if you cannot pay what you owe.

Can I pay off my plan early without a penalty?

Yes. You can pay more than your monthly payment at any time, and you can pay off the entire balance early without any penalty or fee. Paying early reduces the interest that accrues on your remaining balance, so it saves you money.

What if my payment plan is rejected online?

The IRS will tell you why during the setup process. Common reasons include owing more than $50,000, not having filed a return for that year, or having an existing agreement that conflicts. If rejected, you can call 1-800-829-1040 to explore other options or speak with a representative about your situation.

Do I need to make my first payment right away?

No. You choose the payment start date during setup, which is usually 10 to 30 days after you set up the plan. The IRS will confirm this date in your confirmation notice. Your first payment is due on that date, not when ready after you complete the online setup.