The IRS will analyze your full financial situation to determine your ability to pay. The IRS will calculate your monthly payment based on your allowable income and expenses. And you must be able to pay your entire tax balance before the tax collection law is due. Submit your request online through the online payment agreement tool or by phone or by mail by submitting Form 9465, Request for an Installment Agreement.
Your specific tax situation will determine what payment options are available to you. Payment options include a full payment, a short-term payment plan (paid in 180 days or less), or a long-term payment plan (installment agreement) (monthly payment). Pay electronically online or by phone through the IRS Electronic Federal Tax Payment System, or there could be a reinstatement fee if your plan falls into default. A simplified installment plan gives you 72 months (about six years) to pay.
To calculate your minimum monthly payment, the IRS divides your balance by the 72-month period. If you don't negotiate another payment plan, this amount is the default minimum. Generally, the IRS will not require additional financial information to approve this plan. An IRS payment plan is an agreement that gives you an extended period of time to pay the taxes you owe.
By establishing a plan, you will avoid collection actions, such as tax levies and tax levies. The Fresh Start program allows taxpayers to settle their tax debt for less than they owe, giving them a new opportunity to pay their future taxes.