What This Service Actually Does
- A short-term plan gives an eligible individual up to 180 days to pay in full. A long-term installment agreement provides scheduled monthly payments under approved terms.
- People who cannot use the online application may still request other arrangements. A larger balance or need for a smaller payment may require direct contact, a financial statement and supporting records.
Why Someone Might Need It
- The balance is correct but you cannot pay it all now, and your budget supports payments.
- You need to revise an existing agreement before missing a payment or address a notice proposing termination.
What a Professional Might Charge
Selected published examples include a defined $650 engagement and an illustrative $750–$2,500 range for simpler IRS payment arrangements.
Illustrative published fee examples, not a verified national average, required rate, legal price limit, or quote. The price depends on the work and the professional. Agency charges and taxes are separate.
Compare the Full Scope and CostWhat the Professional Fee May Include
- Review of filing compliance, selection of an appropriate agreement and submission for the agreed tax periods.
- Financial-statement preparation, IRS discussions or follow-up only if included in the engagement. Ask why paid representation is needed for your specific case.
What It May Exclude
- The tax balance, government setup fee, ongoing interest, applicable penalties and card processing charges.
- Past-due return preparation, state plans, penalty requests, levy work and later modifications unless listed.
Can I Do This Myself?
Individuals with filed returns and an affordable qualifying payment can often apply directly through the IRS. If an offered payment would leave you unable to cover basic living expenses, discuss a financial review or hardship alternative instead of accepting an unaffordable agreement.
Documents and Information I Need
- Current notice, balance by year, filing records and existing agreement details.
- A monthly budget with income, necessary expenses and current-year tax obligations.
- Photo identification for online registration; bank routing and account numbers if choosing direct debit. Enter these only in the official IRS system.
- Income, expense and asset records if the IRS requests financial disclosure.
Keep these records in your own secure files. This website does not require your tax documents to read or use the guide.
Step-by-Step Instructions
Verify the Balance
Check your IRS account and compare the affected years with your notices. Resolve unexplained payments or adjustments before assuming the displayed balance is the right basis for an agreement.
Confirm Filing Compliance
List required returns and verify they were filed. If a required return is missing, obtain the necessary records and address it. Tell the IRS about a recent filing that has not processed, rather than repeatedly submitting the same return.
Calculate a Sustainable Payment
Subtract essential expenses and current taxes from reliable monthly income. Leave room for variable essentials such as medical costs. Use an amount you can actually maintain, not the amount a salesperson says you should promise.
Review the Available Options
Current online criteria for individuals are $50,000 or less in combined tax, penalties and interest with required returns filed for a long-term plan, or less than $100,000 for a short-term plan. Sole proprietors apply as individuals. Other business accounts currently must contact the IRS.
Open the Official Application
Start from IRS.gov's Online Payment Agreement page and select its application link. If you exceed the online limits or cannot use the tool, call the number on your notice or review Form 9465. Online ineligibility is not a rejection of every payment option.
Complete IRS Authentication
Sign in or create the required account using the official flow. Keep your credentials and verification codes private. Liberty Standard does not sign in for you or receive your account details.
Answer the Application Questions
Review the tax periods, balance and available choices presented. If the information is wrong or your situation involves bankruptcy or an offer already pending, stop and contact the appropriate IRS office before using a routine request.
Select a Suitable Plan
Review the offered amount, payment date, term and method. Confirm that your income arrives before the due date. Do not assume every applicant gets the same number of months. Ask for financial review if the required amount is unaffordable.
Enter Payment Details Securely
Enter direct-debit routing and account information only in the IRS application. Check every digit, the account owner and authorization terms. For nonautomatic payments, decide how you will initiate each payment on time.
Review and Submit
Check the government fee and low-income treatment shown before submitting. Read the terms rather than relying on a private quote. Submit once and keep the result; a completed worksheet or unsent screen is not an application.
Save the Decision
The online application gives an immediate approval result. Save the confirmation, first payment date, monthly amount and method. A mailed request takes longer; follow the IRS acknowledgment and terms rather than assuming approval from proof of delivery.
Make and Verify Payments
Check your bank and IRS records after the first scheduled payment. Make required payments while a mailed request is considered as instructed. A refund applied to old debt does not replace the next scheduled installment.
Stay Current Going Forward
File future returns on time and pay new taxes through appropriate withholding or estimated payments. Keep funds available for direct debit. Review correspondence even while the agreement is active.
Act Before a Payment Becomes Unaffordable
Use the IRS tool or contact the notice office to request a revision. If you receive CP523 or a termination warning, act by its deadline. If paying would prevent basic living expenses, request a hardship evaluation and discuss Currently Not Collectible status.
Checkmarks are a personal reading aid. They are not submitted to an agency or saved as a case record. Enter personal or bank information only through the agency’s secure system.
Official IRS Forms and Resources
What Happens After Submission?
- Approval establishes payment obligations. Check the first payment and keep the confirmation; do not assume a saved application draft is active.
- Some penalties and interest continue. An agreement does not generally prevent the IRS from applying refunds to the balance. Read and respond to later notices.
Common Mistakes to Avoid
- Accepting a monthly amount that prevents necessary food, housing or medical spending.
- Confusing professional charges with IRS setup costs or assuming a private fee pays the tax.
- Stopping payments without contacting the IRS, or letting new tax liabilities accumulate.
When Professional Assistance May Be Appropriate
- Consider an experienced EA, CPA or attorney for a disputed balance, revenue officer assignment, payroll tax debt, complex assets, repeated defaults or a financially documented partial-payment request.
- Get legal advice about bankruptcy or approaching collection limitation dates before choosing a procedure that can affect those periods.
Free or Low-Cost Assistance
Frequently Asked Questions
What Are the Current Government Setup Fees?
The current IRS payment-plan page lists $0 for a short-term plan; $29 online or $107 by phone, mail or in person for direct-debit installments; and $69 online or $178 offline for other installment payments. Confirm the amount displayed at application.
Can a Low-Income Applicant Pay Less?
Qualifying low-income direct-debit applicants receive a setup-fee waiver. Other qualifying applicants may pay $43, with reimbursement under applicable conditions. Use the current IRS instructions or Form 13844 if the IRS did not identify your eligibility.
Why Do Some Sources Still Say $22?
Older materials, including the July 2024 Form 9465 instructions, show $22. This guide uses the current IRS application and payment-plan fee pages. Confirm the fee and terms with the IRS when applying.
Does an IRS Plan Cover State Debt?
No. A state agreement is separate, with its own eligibility rules, fees and application process.
Official guidance reviewed October 10, 2026. General education does not determine eligibility or extend a deadline. Follow the current agency instructions and the dates on your actual notice. These IRS procedures do not replace state-specific rules.