The IRS introduced new Simple Payment Plans that are easier to understand and more accessible. The new option is offered online or when working with an IRS employee and is available for individuals. More than 90% of individual taxpayers with a balance due will qualify for a Simple Payment Plan. If you qualify, no collection information statement or lien determination is required.
How to qualify
- Owe IRS no more than $50,000 in assessed taxes, penalties, and interest, and
- Be up-to-date on filing your tax returns
If you do not qualify for a Simple Payment Plan, see Tax Topic 202 for other payment plan options.
How to pay
The most convenient and least expensive way to pay is to set up automatic monthly payments from your bank account, this direct debit process offers:
- A reduced user fee to set up the plan
- No need for checks, envelopes or stamps
- No trips to the post office
If you ‘d rather not set up a direct debit, you can schedule and modify monthly payments in your online account, or if necessary one payment at a time through IRS Direct Pay.
Payment period
Most taxpayers have up to 10 years to pay off their balance, but the longer you stretch out the payments, the more interest and penalties you will owe. Pay as much as you can as fast as you can to reduce your costs.
How to arrange a payment plan
With an IRS Online Account, you can apply for a Simple Payment Plan and set up a direct debit or other payment methods, without needing to call, mail, or visit the IRS.
If unable to apply for a Simple Payment Plan online, see Tax Topic 202 for other options to submit a payment plan.
Businesses
Businesses should refer to Streamlined Installment Agreements.