DH Expert Guides

The Help Center contains over 100 articles written by industry experts.

Guide to Tax Installment Agreements (Payment Plans)

What is an installment agreement?

An installment agreement is a plan taxpayers make with the IRS to pay their taxes in monthly installments instead of in one lump sum.

Back To Top

What is a 'payment plan'?

For IRS purposes, a payment plan simply is another name for an installment agreement.

Back To Top

Am I eligible for an installment agreement?

In order to be eligible for an installment agreement, you must have filed a tax return, and also be up-to-date on your tax payments. Installment agreements are designed for those who cannot pay in one lump sum.

Back To Top

How do I set one up?

To send up an installment agreement, you should file IRS Form 9465 (Installment Agreement Request) along with your tax return, or you can call 800-829-1040.

Back To Top

When will I find out if my plan has been approved?

You should find out whether or not you have been approved for an installment agreement within 30 days.

Back To Top

What are the benefits?

The purpose of an installment agreement is for a borrower to be able to pay his or her taxes in monthly payments instead of all at once. This is the main benefit.

Back To Top

What are the costs?

The costs of an installment agreement are exactly that – costs. There is an initial $43 set-up fee, as well monthly fees and interest compounded daily throughout an agreement. While it may be easier to make partial payments rather than to pay in full, taxpayers with installment agreements end up paying much more in long run.

Back To Top
Solution Finder
Solution Finder - Eliminate Your Debt