IRS Installment Agreement

An Installment Agreement allows you to pay your tax debt over time through monthly payments. This is the most common resolution option and is available to most taxpayers who cannot pay in full.

Timeline

The IRS does not publish a decision time

Cost

The IRS publishes setup fees that vary by plan type and how you apply, and are lower online

How the IRS decides

The IRS publishes balance thresholds that determine which plans can be applied for online and what financial documentation is required. Where a proposed monthly amount does not meet its requirements, the IRS states it directs the taxpayer to Form 433-H, 433-F or 433-B.

Key Takeaways

Pay tax debt over time in monthly installments
The IRS publishes balance thresholds that govern which plans can be applied for online
Can be set up online in minutes
Interest and penalties continue to accrue

Best For

Taxpayers with steady income who can afford monthly payments
Those whose balance is at or below the IRS-published threshold for applying online
People who want to avoid more aggressive collection actions
Those who need time but can eventually pay in full

Requirements

1
All required tax returns must be filed
2
Must be able to pay the debt within the collection statute (usually 72 months max)
3
Cannot be in default on a previous installment agreement
4
Must agree to pay via direct debit for certain agreements

How to Apply for IRS Installment Agreement

Determine Amount

Calculate your total tax debt including penalties and interest.

Choose Agreement Type

Select streamlined, regular, or partial payment installment agreement based on amount owed.

Apply

Apply online, by phone, or by mail using Form 9465.

Setup Payments

Set up automatic payments from your bank account.

Make Payments

Make all payments on time and stay current on future taxes.

Advantages

Available to most taxpayers
Quick approval for streamlined agreements
Stops wage garnishments and bank levies
Can be set up online where the balance is at or below the IRS-published threshold
Flexible payment amounts based on ability to pay

Disadvantages

Interest and penalties continue to accrue
Tax lien may still be filed
Must stay current on future taxes
A setup fee applies, varying by plan type and application method — the IRS publishes the current amounts
Defaulting restarts collection activity

Frequently Asked Questions

What is a "streamlined" installment agreement?

It is a name the IRS has moved away from. The current page states the IRS "now offers Simple payment plans for individuals and businesses." What the IRS does publish is a threshold for applying ONLINE: an individual may apply online for a long-term payment plan owing $50,000 or less in combined tax, penalties and interest, with all required returns filed, or for a short-term plan owing less than $100,000. Those are application thresholds, not a determination that a plan will be granted.

How much will my monthly payment be?

At minimum, your total debt divided by the remaining months on the collection statute (max 72 months). For larger debts, the IRS may require higher payments based on your income and expenses.

Can I change my payment amount?

Yes. If your financial situation changes, you can request to modify your installment agreement. The IRS will review your finances and may adjust the payment amount.

What happens if I miss a payment?

Missing payments can result in default. The IRS will typically send a notice before terminating the agreement. Contact them immediately if you cannot make a payment.

Is Payment Plan Right For You?

Read what the IRS publishes about each program. Eligibility is determined by the IRS on your full circumstances.

Take the Quiz

Other Options

OIC

Taxpayers who cannot pay their full tax liability

CNC Status

Taxpayers experiencing severe financial hardship

Penalty Relief

Situations where the same return type was filed on time for the prior three years and no penalty was assessed in that window — the timely compliance history the IRS tests for administrative relief

Pay in Full

Taxpayers who have the funds available now and want to stop interest and penalties from growing further

Short-Term Plan

Taxpayers who can pay the full balance within 180 days and want to avoid any setup fee

Guaranteed IA

Individuals whose income tax liability, excluding penalties and interest, is small enough to meet the published limit

Simple Payment Plan

Individual, out-of-business sole-proprietor, or non-trust-fund business taxpayers whose balance is at or below the published threshold

Full-Disclosure IA

Balances above the Simple Payment Plan's aggregate threshold

Appeals / CDP

Someone who disagrees with a specific IRS collection action — a lien filing, a levy, or a rejected/modified/terminated installment agreement

Innocent Spouse

A joint filer who did not know about, and had no reason to know about, errors the other spouse made on a joint return

Injured Spouse

A joint filer whose share of a joint refund was applied to the other spouse's separate debt — back taxes, child support, federal student loans, or other debts subject to offset

Bankruptcy

Understanding, in general terms, what the Bankruptcy Code says determines whether an income tax debt can be discharged

Details

Timeline

The IRS does not publish a decision time. It states that while a request is pending it is generally prohibited from levying, and that the collection period is suspended while an agreement is pending.

Costs

The IRS publishes setup fees that vary by plan type and how you apply, and are lower online. It waives the fee for low-income taxpayers who pay by direct debit, and reimburses it in some other cases. The current figures are on the IRS payment plans page — they change, so this page does not restate them.

How the IRS decides

Form 9465 (Installment Agreement Request)

The paper route to a payment plan. The IRS points to the online application first, and states that route is cheaper.

Form 433-D (Installment Agreement)

The form that formalizes an approved installment agreement — the payment amount, due date, and (if elected) direct debit authorization the IRS signs off on.

Form 433-F (Collection Information Statement)

The shortest of the three Collection Information Statements. It is the one CP522 asks for, and the IRS says not to mail that one.

Form 433-H (Installment Agreement Request and Collection Information Statement)

A combined installment agreement request and financial statement for wage earners. The IRS directs you to it when a proposed monthly amount does not meet its requirements.

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.

Short-Term Payment Plan

An IRS plan to pay a balance in 180 days or less, with no setup fee. Penalties and interest still accrue.

Fresh Start vs. Offer in Compromise

Comparison

Sources

Payment plans; installment agreements — Internal Revenue Service, retrieved 2026-08-20

Last reviewed 2026-08-20. Sourced to primary IRS materials and editorially reviewed. Not reviewed by a tax professional. Not tax advice. Report a correction.