An IRS payment plan is an agreement you make directly with the agency to pay your federal tax bill over a certain amount of time. The IRS offers two (2) payment plan options:

• Short-term payment plan- this plan gives taxpayers the option to pay off their tax debt for either 90 or 180 days;
• Long-term payment plan- also known as an installment agreement which gives taxpayers who may need more than 180 days to settle their tax bill the option to pay off their tax debt in monthly installments. 

Who is eligible for an IRS payment plan?

Your specific tax situation will determine which payment options are available to you. Payment options include full payment, a short-term payment plan (paying in 180 days or less) or a long-term payment plan (installment agreement) (paying monthly).

You can also apply online for either short or long-term plan via IRS’ Online Payment Agreement tool.

You may qualify to apply online if:

• Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns.
• Short-term payment plan: You owe less than $100,000 in combined tax, penalties and interest.