Owed the IRSTax debt
Can't Pay a Tax Bill in Full? The IRS Explains Its Online Payment Plans
The IRS explains what to do when a tax bill can't be paid in full: file on time, pay what's possible, and apply online for a short-term or monthly payment plan. It covers who may qualify and the interest and penalties that keep adding up.
Video by IRSvideosPublished August 7, 2023Breakdown updated September 15, 2026
“Set Up an IRS Payment Plan Online” by IRSvideos. We didn't make this video; it loads from YouTube when you press play.
What the video covers
This short IRS video is for people who owe federal taxes they can't pay all at once. It walks through the online options for spreading payments out and what keeps costing money while a balance is open.
The steps it walks through
- 1
File the tax return on time and pay as much as possible, even if the full amount isn't available.
- 2
Pay what's possible now by direct debit, card, phone, mobile device or check.
- 3
For the rest, check whether a short-term plan of up to 180 days or a long-term monthly plan fits.
- 4
Verify identity to use the IRS's online self-service tools.
- 5
Apply through the Online Payment Agreement tool and get an immediate answer on approval.
- 6
Use the same tool or an IRS online account later to change payment dates, amounts or bank details and to check the balance.
What you can learn from it
Filing on time still matters
The IRS says people who can't pay in full still need to file on time and pay what they can.
Short-term plans have no setup fee
The IRS currently lists a $0 setup fee for individuals who apply online for a plan of 180 days or less and owe less than $100,000 in combined tax, penalties and interest.
Monthly plans cost more to set up
For balances of $50,000 or less, the IRS lists long-term setup fees from $29 online with direct debit to $178 by phone, mail or in person without it, with low-income taxpayers paying less or nothing.
Interest keeps adding up
The IRS says interest and some penalty charges continue to be added until the balance is paid in full.
Check current terms before applying
This video dates from 2023, and IRS thresholds and fees change. The IRS payment plans page lists the current rules.
In their words
“Filing your tax return and paying what you owe on time is always best.”
“And you will get immediate confirmation that your payment plan is approved.”
Keep in mind
The video was published in 2023, and a few details, such as how it words the short-term limit, differ from the IRS's current pages. For a specific tax situation, a tax professional or the IRS itself can help.
Watch out: Be wary of firms promising to settle tax debt for pennies on the dollar.
See tax debt optionsCommon questions
Who qualifies for an IRS long-term payment plan?
The IRS says individuals may qualify for a long-term payment plan if they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns.
Source: irs.govHow much does an IRS payment plan cost to set up?
Short-term plans of 180 days or less have a $0 setup fee when applying online. Long-term plans currently cost $29 to set up online with direct debit and more by other methods, with lower or waived fees for low-income taxpayers; interest and some penalties still accrue.
Source: irs.govHow fast will I know if my IRS payment plan is approved?
When applying online, right away. The IRS says people who complete the online application receive immediate notification of whether their payment plan has been approved.
Source: irs.govSources
By DebtCheckUSAEditorial Team. This is our summary of a video we didn't make, and nobody paid us to include it. It's one person's experience, not financial, tax or legal advice. Advertiser disclosure
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