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Direct Debit Installment Agreement (DDIA)

A long-term IRS payment plan paid by automatic monthly bank debit. It carries the lowest setup fee and can support a lien withdrawal request.

Full Definition

A Direct Debit Installment Agreement is a long-term payment plan paid by automatic monthly withdrawals from a checking account. The IRS states it carries a lower setup fee than other long-term plans, that the fee is lower again when you apply online, and that the fee is waived for taxpayers it identifies as low income. Penalties and interest continue to accrue until the balance is paid in full. A DDIA also matters for liens: the IRS lists entering into or converting to a Direct Debit installment agreement as one of the routes to requesting withdrawal of a Notice of Federal Tax Lien, subject to conditions it publishes. You can convert an existing agreement to Direct Debit through your IRS online account.

What to do next

Set one up or convert an existing agreement through your IRS online account. If a lien has been filed, read Lien Withdrawal before you do — the order can matter.

Sources

Last reviewed 2026-08-20 by Tax Resolution Clarity editorial.

Sourced to primary IRS materials and editorially reviewed. Not reviewed by a tax professional. Not tax advice.

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