2025-03-06
The IRS introduced new Simple Payment Plans that are easier to understand and more accessible. The new option is offered online or when working with an IRS employee and is available for individuals. More than 90% of individual taxpayers with a balance due will qualify for a Simple Payment Plan. If you qualify, no collection information statement or lien determination is required.
To qualify you must be up-to-date on filing your tax returns and not owe IRS more than $50,000 in taxes, penalties and interest. You can apply for a Simple Payment Plan and set up a direct debit or other payment methods, with an IRS Online Account without needing to call, mail, or visit the IRS.
If you do not qualify for a Simple Payment Plan, or are unable to apply for a Simple Payment Plan online, see Tax Topic 202 for other payment plan options.
The most convenient and least expensive way to pay is to set up automatic monthly installment payments from your bank account, with a reduced user fee to set up the installment plan. If you ‘d rather not set up a direct debit, you can schedule and modify monthly payments in your online account, or if necessary one payment at a time through IRS Direct Pay.
Most taxpayers have up to 10 years to pay off their balance, but the longer you stretch out the payments, the more interest and penalties you will owe. The IRS generally has 10 years from the date your tax was assessed to collect the tax and any associated penalties and interest from you. This time period is called the Collection Statute Expiration Date (CSED).
Businesses should refer to Streamlined Installment Agreements.