Installment Agreements (Payment Plans)


If you are not financially able to pay all of the taxes you owe, you can set up an installment agreement to make monthly payments toward the debt. The IRS charges a one-time set up fee to start the agreement, but you may qualify for a reduced set-up fee if your income is below a certain level. If you owe less than $50,000, are compliant with filing your tax returns, and can afford to pay off the debt in 72 payments or less, you can try to set up the payment agreement online using the IRS’s Online Payment Agreement Application.