How to pay your IRS payment plan
You pay an IRS payment plan the same way you pay any other bill: by sending money to the IRS on a schedule you agree to beforehand. The IRS gives you several ways to send that money—online, by phone, by mail, or through automatic bank withdrawals. The method you choose affects how quickly the IRS records your payment and whether you pay a setup fee. Most people use automatic withdrawals because the payment happens without them having to remember each month, and the IRS charges no fee for that method.
The payment plan itself is a legal agreement between you and the IRS. Once you have one in place, you owe the IRS a specific amount on a specific date each month (or quarter, depending on the plan type). Missing a payment can end the plan and trigger collection action, so understanding your options before you commit matters.
Key Takeaways
- Automatic bank withdrawals cost nothing and are the fastest way to pay because the IRS records them when ready.
- Online payment through IRS.gov or a third-party processor costs $2.50 to $3.95 per transaction and posts within one business day.
- Phone and mail payments take longer to process and may incur fees depending on the payment method you choose.
- Missing a payment on your plan can terminate the agreement and restart collection activity, so set up reminders or use automatic payments.
- The IRS charges a setup fee for most payment plans ($31 to $225 depending on the plan type and how you set it up), but automatic withdrawal plans often cost less.
Automatic withdrawals from your bank account
Automatic bank withdrawals are the IRS's preferred payment method because money moves directly from your account to theirs on the date you choose. You authorize the IRS to pull the payment using your routing number and account number—the same information you would write on a check. The withdrawal posts to the IRS within one business day, so there is no delay in crediting your account.
To set up automatic withdrawals, you can use the IRS's online payment agreement tool at IRS.gov, call the IRS at 1-800-829-1040, or work with a tax professional who can submit the request on your behalf. You will need your Social Security number or employer identification number, your bank account information, and the payment amount and date you want each month. The IRS charges $31 to set up an automatic withdrawal plan if you do it online or by phone yourself, or $225 if you use a tax professional or payment processor to set it up for you.
Once the plan is active, the IRS will pull the agreed amount on the date you specified each month. If your bank account does not have enough money on that date, the withdrawal will fail and the IRS will treat it as a missed payment. Set up a reminder a few days before the withdrawal date so you can make sure the money is there.
Online payment through IRS.gov or a third-party processor
You can pay your monthly plan amount online through the IRS's official payment portal at IRS.gov/payments or through an approved third-party processor. The IRS lists all approved processors on its website; common ones include PayPal, Stripe, and various tax software companies. Online payments cost between $2.50 and $3.95 per transaction depending on which processor you use, and the payment posts to your account within one business day.
To pay online, log into the IRS payment portal or your processor's website, enter your plan information and the amount you want to pay, and choose your payment method (debit card, credit card, or bank account). The IRS will send you a confirmation number when ready. Write down the confirmation number and keep it with your tax records in case you need to prove you made the payment.
Online payments are faster than mail but slower than automatic withdrawals because you have to remember to make the payment each month. If you miss a payment date, the IRS will not automatically charge you—you have to initiate the payment yourself. This makes online payment riskier than automatic withdrawal if you tend to forget important date.
Phone payments and payment processors
You can pay your IRS plan by phone by calling 1-800-829-1040 and speaking to an IRS representative. The representative will take your payment information over the phone and process the payment when ready. Phone payments cost $2.50 to $3.95 depending on the payment processor the IRS uses that day, and the payment posts within one business day.
Phone payments are useful if you have questions about your plan or want to make a one-time payment outside your regular schedule. However, they require you to call during IRS business hours (usually 7 a.m. to 7 p.m. your local time, Monday through Friday), and wait times can be long during tax season. If you need to make a payment quickly and cannot reach the IRS by phone, use the online portal instead.
Mailed checks and money orders
You can mail a check or money order to the IRS, but this method is the slowest. The IRS must receive your payment, open the envelope, process the check, and deposit it—a process that typically takes two to four weeks. During that time, your payment is not credited to your account, so if you are close to a important date or worried about missing a payment, do not use mail.
To mail a payment, write your Social Security number and tax year on the check or money order, and send it to the IRS address listed on your payment plan notice. Include a copy of the notice or a letter explaining which tax year and plan the payment is for. The IRS will send you a receipt by mail once the payment clears, but this can take several weeks.
Mail is useful only if you do not have a bank account or internet access and cannot reach the IRS by phone. For everyone else, automatic withdrawal or online payment is faster and more reliable.
What happens if you miss a payment
If you miss a payment on your plan, the IRS will send you a notice. You typically have 30 days to make the missed payment before the IRS terminates the plan. Once the plan is terminated, you owe the full remaining balance when ready, and the IRS can resume collection action—wage garnishment, bank levies, or liens on your property.
If you know you will miss a payment, contact the IRS before the due date. Call 1-800-829-1040 and explain your situation. The IRS may allow you to skip a month, extend your plan, or modify the payment amount. It is much easier to ask for a change before you miss a payment than to try to fix it afterward.
If you miss a payment by accident, make it as soon as you realize the mistake. The sooner you pay, the less likely the IRS is to terminate the plan. Keep records of when you made the payment and the confirmation number so you can prove you paid if the IRS claims you did not.
Fees and costs of different payment methods
| Payment Method | Transaction Fee | Setup Fee | Processing Time |
|---|---|---|---|
| Automatic bank withdrawal | None | $31 (online/phone) or $225 (through professional) | 1 business day |
| Online (IRS.gov or processor) | $2.50–$3.95 | Included in plan setup | 1 business day |
| Phone payment | $2.50–$3.95 | Included in plan setup | 1 business day |
| Mailed check or money order | None | Included in plan setup | 2–4 weeks |
The cheapest way to pay is automatic withdrawal because there is no per-transaction fee. If you set it up yourself online or by phone, the setup fee is $31. If you use a tax professional or payment processor to set it up, the fee is $225, which makes it more expensive than paying online each month.
Online and phone payments cost $2.50 to $3.95 each time you pay. If your plan runs for 60 months, that is $150 to $237 in fees over the life of the plan. Automatic withdrawal costs $31 upfront and nothing after that, making it the better choice if you can commit to a regular payment date.
Frequently Asked Questions
Can I change my payment method after I set up the plan?
Yes. You can call the IRS at 1-800-829-1040 and ask to switch from one payment method to another. If you want to switch to automatic withdrawal, the IRS may charge you another $31 setup fee, or it may waive the fee if you are already on a plan. Ask before you commit.
What if I want to pay more than my monthly amount?
You can pay extra at any time without penalty. Make the extra payment through the same method you use for your regular payment, and note in the payment details that it is an extra payment toward your plan. The extra money will reduce the total amount you owe and shorten the length of your plan.
Do I need to make a payment if the IRS owes me a refund?
No. If you are owed a refund in a future year, the IRS will automatically explore it to your plan balance instead of sending it to you. You do not need to do anything. The refund will reduce what you owe, and your monthly payment may decrease or the plan may end early.
What if I cannot afford my monthly payment anymore?
Contact the IRS at 1-800-829-1040 and ask to modify your plan. You can request a lower monthly payment, a longer repayment period, or a temporary pause. The IRS will review your financial situation and may grant the request. Do not straightforward stop paying—that will terminate the plan and trigger collection action.
How do I know if my payment was received?
For automatic withdrawals and online payments, you will receive a confirmation number when ready. For phone payments, the IRS representative will give you a confirmation number. For mailed payments, keep a copy of the check or money order and wait for the IRS receipt. If you do not receive a receipt within four weeks of mailing, call the IRS to confirm the payment was received.