A Guide To IRS Payment Plans in 2026

How to Get a Payment Plan with the IRS
IRS Payment Plans & Installment Agreements: Your 2026 Guide
  

IRS Payment Plans & Installment Agreements: Your 2026 Guide

Receiving a notice from the IRS stating that you owe money is very scary. Fortunately, the IRS provides payment options, such as installment agreements, for eligible taxpayers who need more time to settle their tax debt.

This guide outlines the different types of installment agreements, their terms, and eligibility requirements to help you determine the best repayment plan for your situation.

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What is an IRS Installment Agreement?

An IRS installment agreement is a structured repayment plan that allows taxpayers to pay off their tax debt through manageable monthly payments. This option helps individuals avoid tax levies while working toward clearing their balance. However, penalties and interest will continue to accrue until the full amount is paid.

If you need additional time to settle your tax debt, an installment agreement might be the right choice for you.

Pro Tip: If you are currently trying to buy a home, an active installment agreement is often required by lenders to prove you are in "good standing" with the IRS.

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Different Types of IRS Installment Agreements

If you're looking for a way to pay off tax debt in installments, it's essential to understand which agreement best suits your financial situation. The most suitable plan depends on how much you owe and the time required to repay the balance.

Installment Agreement No Questions Asked

If you owe $10,000 or less, you are likely guaranteed approval if:

  • You have filed all returns on time for the past 5 years.
  • You can pay the full amount within 3 years (36 months).
  • You haven’t had an installment agreement in the last 5 years.

One major advantage of this agreement is that the IRS will not file a tax lien or levy against you. Additionally, if your balance does not exceed $10,000, you are not required to submit extra financial details for approval.

Streamlined Installment Agreement

In 2026, the IRS expanded "Simple Payment Plans." These are available to individuals with balances of $50,000 or less (including penalties and interest).

  • Term: Usually up to 72 months (6 years).
  • Benefit: No financial statement (Form 433-F) is generally required.

Partial Pay Installment Agreement (PPIA)

If you cannot afford the minimum monthly payment for a standard plan, a PPIA allows you to pay what you can afford until the Collection Statute Expiration Date (CSED)—usually 10 years.

  • Requirement: Requires full financial disclosure (Form 433-A or 433-F).
  • Review: The IRS reviews your finances every two years and may increase your payments if your income rises.

To qualify, taxpayers must submit Form 433-F (Collection Information Statement) detailing their income, expenses, and assets. The IRS may require additional financial information to assess eligibility.

Payments continue until the debt is fully settled or the balance is discharged due to the collection statute expiration date (CSED).

I highly recommend consulting a tax attorney to help secure the lowest possible payment.

Non-Streamlined Installment Agreement

For larger debts up to $250,000, you may qualify for a non-streamlined plan.

  • Key Condition: You must be an individual (not an active business).
  • Lien Notice: The IRS will likely file a Notice of Federal Tax Lien to protect the government's interest.

If avoiding a tax lien is a priority, paying down a portion of the debt to qualify for a streamlined installment agreement may be a better option.

  

Requirements for Requesting an Installment Agreement

All Returns Must Be Filed

Before applying for an installment agreement, the IRS requires that all past-due tax returns be filed. Typically, you must submit the last six years of returns to be eligible. If the IRS has already filed a Substitute for Return (SFR) on your behalf, you may be able to use it instead, but ensure it accurately reflects your tax liability.

IRS May Require Form 433-D

To finalize an installment agreement, the IRS may require you to sign Form 433-D. This form outlines the terms of your repayment plan and is used to set up direct debit payments from your bank account. If you establish your agreement online, you may need to sign an electronic version of this form.

  

How to Apply for an IRS Installment Agreement?

The application process for an IRS payment plan depends on the amount you owe and the option you choose. A tax professional can help with the process, or you can follow the steps below to apply independently.

 

Apply Online

Before you apply online to set up an installment agreement, you will need to do the following: You must create an IRS account by providing your name, Social Security Number, and other tax-related information. Identity verification requires an official ID, a camera, and an email address.

If your tax debt is $50,000 or less, you can apply for an installment agreement through the IRS online portal. Businesses with $25,000 or less in balances are also eligible to apply online.

Apply by Mail

Individuals can also apply for a payment plan by submitting Form 9465 (Installment Agreement Request) via mail. You may also use this form if you request a payment plan for a business that is no longer operating. Taxpayers who owe more than $50,000 must apply by mail and may need to include a Collection Information Statement to provide details about their financial status.

Apply by Phone

Instead of mailing Form 9465, you can call the IRS to provide the required information over the phone. Individuals can reach the IRS at 800-829-1040, while businesses should call 800-829-4933. If your IRS notice includes a specific contact number, you can also call that number to request an installment agreement.

By choosing the best application method for your situation, you can set up an installment plan that helps you manage your tax debt while staying in good standing with the IRS.

  

How Do You Make Payments on an Installment Agreement?

The IRS offers multiple payment methods for installment agreements, including:

  • Direct debit
  • Credit card
  • Payroll deduction
  • Check or money order
  • Online Payment Agreement (OPA)
  • Electronic Federal Tax Payment System (EFTPS)

This can be done at IRS.gov

 

  

Does the IRS Charge Fees for Setting Up an Installment Agreement?

The IRS charges a setup fee for most payment plans. As of 2026, the fees are:

  • Online setup with direct debit: $22
  • Mail, phone, or in-person setup with direct debit: $107
  • Low-income applicants with direct debit (online, phone, or in-person): No fee
  • Online setup without direct debit: $69
  • Mail, phone, or in-person setup without direct debit: $178
  • Low-income applicants without direct debit (online, phone, or in-person): $43 (may be reimbursed if eligibility criteria are met)

Direct debit can lower your setup fee, and qualifying low-income taxpayers may be eligible for reduced or waived fees.

  

Can the IRS Cancel an Installment Agreement?

Taxpayers must adhere to the payment schedule once an installment agreement is in place. Failure to comply with the terms could result in termination of the agreement.

The IRS may revoke an installment agreement for the following reasons:

  • Missing a scheduled payment
  • Failing to file future tax returns or pay new taxes on time
  • Providing incorrect or misleading information on Form 433-F
  • A change in financial status for taxpayers with a PPIA

If the IRS intends to terminate an installment agreement, it will issue a written notice, granting 30 days to correct the issue.

By understanding the various installment agreements available and their requirements, taxpayers can choose the most suitable option to repay their tax debt while remaining in good standing with the IRS.

  

Conclusions

Tax debt doesn’t have to stand in the way of your financial goals, including homeownership. By setting up an IRS installment agreement, you can take control of your tax obligations while keeping your options open for securing a mortgage. Whether you qualify for a guaranteed, streamlined, partial pay, or non-streamlined agreement, choosing the right plan ensures manageable monthly payments and helps you comply with the IRS.

Understanding the application process, requirements, and potential fees can make the process smoother and help you avoid penalties or collection actions. If you’re unsure which option is best for your situation, consulting a tax attorney can provide guidance and help secure the most favorable terms.

Proactively addressing your tax debt with an installment agreement can improve your financial standing and keep your future housing choices open. Don’t let tax debt limit your opportunities—take action today to set up a repayment plan that works for you.

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