The IRS phone number for payment plans is 1-800-829-1040
Call 1-800-829-1040 during business hours (Monday through Friday, 7 a.m. to 7 p.m. your local time) to discuss a payment plan with an IRS representative. This is the main IRS customer service line, and it routes you to the right department once you explain you want to set up a plan to pay taxes you owe over time rather than in one lump sum.
The IRS also offers an automated phone system at the same number if you want to set up a short-term plan (120 days or fewer) without speaking to a person. You can follow the prompts to arrange payment, though a representative can answer questions about longer plans or your specific situation.
Before you call, have your Social Security number or employer identification number, the tax year you owe for, and a rough idea of how much you can pay each month. The representative will ask about your income and expenses to determine what monthly payment the IRS thinks you can afford.
Key Takeaways
- Call 1-800-829-1040 to speak with an IRS representative about setting up a payment plan for taxes you owe.
- The IRS offers both automated setup for plans of 120 days or less and representative-assisted plans for longer repayment periods.
- You will need your Social Security number, the tax year in question, and information about your monthly income and expenses.
- The IRS charges a setup fee (between $31 and $225 depending on the plan type) and monthly interest and penalties on the unpaid balance.
- If you cannot reach the IRS by phone, you can also set up a payment plan online through IRS.gov or in person at a local IRS office.
What happens when you call
When you reach the IRS line, tell the representative you want to set up a payment plan. They will pull up your account using your Social Security number and confirm how much you owe, which tax year the debt is from, and whether you have filed all required returns.
The representative will then ask about your monthly income, housing costs, utilities, food, transportation, and other regular expenses. The IRS uses this information to calculate what it considers a reasonable monthly payment. You can propose a different amount if you believe you can pay more or less, and the representative can work with you on that.
Once you agree on a monthly payment amount, the representative will explain the setup fee (which varies by plan type) and confirm when your first payment is due. You can pay by phone using a debit card or bank account, or the representative can give you other payment methods to use later.
Different plan types and their costs
The IRS offers two main types of payment plans: short-term and long-term. A short-term plan is 120 days or fewer, and the setup fee is $31 if you pay by electronic withdrawal from your bank account, or $225 if you pay by check, money order, or credit card. You can set up a short-term plan using the automated phone system without speaking to anyone.
A long-term plan (called an installment agreement) lasts longer than 120 days. The setup fee is $31 for electronic withdrawal, $225 for other payment methods, or $31 if your monthly payment is $25 or less. Long-term plans require speaking with a representative, who will assess your financial situation and determine the monthly payment amount.
In addition to the setup fee, you will owe interest and penalties on the unpaid balance each month. The interest rate is set by the IRS quarterly and is currently in the range of 8 percent per year, though this changes. Penalties also accrue — typically 0.5 percent of the unpaid tax per month if you are on a payment plan. These amounts are added to your balance each month.
When to call versus using other methods
Calling is the fastest way to speak with someone who can answer questions about your specific situation — for example, if you owe for multiple years, if you have had payment plans before, or if you are unsure how much you can afford to pay each month. A representative can also discuss whether a payment plan is the best option for you or whether you might may have access to for other relief programs.
If you prefer not to call, you can set up a payment plan online at IRS.gov using the Online Payment Agreement tool. This tool works for most people and does not require speaking to anyone. You can also visit a local IRS office in person, though wait times vary by location and season.
The automated phone system is useful if you know exactly what you want — a short-term plan of 120 days or less — and you do not have questions. It is faster than waiting to speak to a representative, though you will not be able to discuss your circumstances or negotiate the payment amount.
What to have ready before you call
Gather your Social Security number or employer identification number (if you are self-employed or own a business), your most recent tax return or notice of what you owe, and information about your monthly income and expenses. If you have a job, know your gross monthly income. If you are self-employed, have a rough figure for your average monthly income over the past few months.
Write down your regular monthly expenses: rent or mortgage, utilities, groceries, transportation, insurance, childcare, medical costs, and any other bills you pay regularly. The IRS uses these numbers to decide what monthly payment is reasonable. If you have other debts (credit cards, student loans, car payments), have those amounts available too, though the IRS focuses mainly on essential living expenses.
If you are calling about a tax year other than the most recent one, have the tax year ready. If you have not filed a return for that year, the IRS will ask you to file it before setting up a payment plan, because the IRS cannot collect on a debt for a year you have not reported.
Common reasons the IRS may deny a payment plan
The IRS will not set up a payment plan if you have not filed a tax return for the year you owe for. You must file the return first, even if you cannot pay the full amount due. Once the return is filed, you can then set up a plan to pay what you owe.
If you are currently in bankruptcy, the IRS cannot collect from you, and a payment plan is not possible until the bankruptcy is resolved. If you have defaulted on a previous payment plan with the IRS (missed payments for more than a few months), the IRS may require you to pay the full amount or may offer only a very short plan.
If the amount you owe is very small — under $25 per month based on the IRS's calculation of what you can afford — the IRS may deny the plan and ask you to pay in full instead. This is rare, but it can happen if your income is very low or your expenses are very high.
What happens after you set up the plan
Once your plan is approved, the IRS will send you a confirmation letter in the mail within two to three weeks. This letter shows your monthly payment amount, the due date each month, and the account number for your plan. Keep this letter for your records.
You will owe interest and penalties each month on top of your regular payment. These accrue automatically and are added to your balance. If you pay more than your required monthly amount, the extra goes toward reducing the principal (the original tax debt), which lowers the total interest you will pay over time.
If you miss a payment or pay late, the IRS may terminate the plan and demand full payment of the remaining balance. If this happens, you can call 1-800-829-1040 again to request reinstatement, but the IRS is not required to grant it. Staying current on your payments is critical to keeping the plan in place.
Frequently Asked Questions
Can I set up a payment plan if I owe for multiple years?
Yes. The IRS can combine what you owe for multiple years into a single payment plan. When you call, mention all the years you owe for, and the representative will calculate a total amount and work with you on a monthly payment that covers all of them.
What if I cannot afford the monthly payment the IRS suggests?
Tell the representative. You can propose a lower amount, and they can work with you. However, the IRS will not agree to a payment so low that you will be paying for many years — there are limits on how long a plan can last. If you truly cannot afford any reasonable payment, ask about other relief options like an offer in compromise or currently not collectible status.
Do I have to pay the setup fee upfront?
No. The setup fee is usually added to your first payment or included in your monthly payments. The representative will explain how it will be handled when you set up the plan.
Can I change my monthly payment amount after the plan is set up?
Yes. Call 1-800-829-1040 and ask to modify your payment plan. You can increase or decrease the amount, though the IRS may refuse a decrease if it would extend the plan too far into the future.
What if I pay off the plan early?
You can pay off the remaining balance at any time without penalty. Paying early reduces the total interest you will owe. Call the IRS to ask for the exact payoff amount, which includes any accrued interest and penalties through the date you plan to pay.