Who qualifies
- You’re an individual who owes $50,000 or less in combined, assessed tax, penalties and interest.
- You’re current with all filing and payment requirements. Every required return is filed.
The IRS says more than 90% of individual taxpayers will qualify. What the plan doesn’t require is just as important: no collection information statement, no lien determination and no trust fund recovery penalty determination.
How to apply
- Online, by signing in to your IRS Online Account. This is the cheapest and fastest route.
- By phone, at the number on your notice or 800-829-1040.
- In person, at an IRS Taxpayer Assistance Center.
What it costs
| How you pay | Apply online | Apply by phone, mail or in person |
|---|---|---|
| Automatic monthly payments from your bank account | $29 (waived for lower-income individuals) | $107 |
| Other methods: Direct Pay, card, check | $69 | $178 |
If you can pay in full within 180 days, a short-term plan has no setup fee.
Keeping it in good standing
- Pay on time every month.
- File every future return on time and pay any new tax when due. A new balance or a missing return can put the plan in default.
Why unfiled years lock you out
This plan is the easiest way to pay an IRS balance over time, and it’s only open to people who’ve filed. If you have missing years, filing them is what opens this door. See catch-up filing.