How to Request an IRS Payment Plan
If you owe the Internal Revenue Service $25,000 or less in taxes and penalties, you can use the IRS online payment agreement application or call the IRS on their customer service line to set up a payment plan. The IRS also has forms available to request a payment agreement plan. To qualify for the payment plan, your financial position must be such that you are not in a position to make a full payment.
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Instructions
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Determine how much you owe in taxes and penalties. Taxpayers who owe more than $25,000 have to complete a financial disclosure form to supplement their request for a payment plan.
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Download IRS form 9465, Installment Agreement Request. If you can pay the amount owed in full within 120 days, you can avoid the fees associated with setting up the payment plan. Call the IRS at the number on the form to schedule the plan.
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Complete IRS form 9465. Enter figures for the amount you owe, the payment you are making with your tax return, and the monthly payment you are requesting. To minimize interest and penalty charges, make the proposed payments as large as you can.
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Complete the electronic withdrawal option on form 9465 if you wish to pay electronically. If you owe less than $10,000, the IRS will generally accept your request for a payment plan if you have been current with your taxes in the previous five years. The agreement cannot extend beyond three years and during that period you must remain current with all your tax obligations. Mail the form to the IRS.
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Complete IRS form 433-F if you owe more than $25,000. This form is a disclosure of your financial net worth. The form requests information on your accounts, lines of credit, real estate holdings, debts and monthly expenses. Mail the form to the IRS along with form 9465.
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