Mitch Levin, CPA

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How to Request an Installment Agreement With the IRS for Free

How to Request an Installment Agreement With the IRS for Free

If you owe the IRS and can’t pay your full balance right away, an IRS installment agreement (also known as a payment plan) is one of the easiest and most affordable ways to resolve your tax debt. But here’s something many taxpayers don’t realize:

👉 You do NOT have to pay anyone to set it up.
👉 You can request an IRS installment plan completely FREE.
👉 It takes less than 15 minutes.

Tax relief companies often charge $1,000–$6,000 for something the IRS allows you to do yourself at no cost.

Why You Should Never Pay for an IRS Installment Agreement

The IRS intentionally made installment plans easy so taxpayers can apply on their own.

You don’t need:

  • A lawyer

  • A CPA

  • A tax relief company

  • Any kind of negotiation service

For most taxpayers, installment plans are automatically approved — especially when done online.

Many companies charge high fees but simply:

  • Enter your name

  • Enter your balance

  • Set up your payment

  • Submit through the IRS website

You can easily do this yourself at no cost.

Step 1: Determine What Type of IRS Installment Agreement You Qualify For

The IRS offers two main payment plan options:

1. Short-Term Payment Plan (180 Days or Less)

✔ No setup fee
✔ For balances under $100,000
✔ Pay by debit/credit, check, or electronic transfers
✔ Perfect if you just need a few months to catch up

2. Long-Term Installment Agreement (Monthly Payments)

✔ For balances $50,000 or less
✔ Automatic approval if all tax returns are filed
✔ Monthly payments required
✔ Choose automatic withdrawals to avoid setup fees

If you owe more than $50,000, you may still qualify — you’ll just need additional paperwork.

Step 2: Apply Online Through the IRS Website (Completely Free)

The fastest and easiest way to request a free payment plan is through the Online Payment Agreement tool.

👉 Go to:

IRS.gov/OPA

You’ll need:

  • SSN or ITIN

  • Date of birth

  • Filing status

  • Bank account details (if using direct debit)

  • Most recent tax return information

Benefits of applying online:

✔ No fees
✔ Immediate approval in most cases
✔ Takes about 15 minutes
✔ No phone calls
✔ No paperwork
✔ No expensive tax company needed

If you want the process done instantly and free, this is the best option.

Step 3: Request an Installment Agreement by Mail (Using Form 9465)

If you prefer paper filing, you can request an installment plan for free by completing:

📝 Form 9465 – Installment Agreement Request

Download it here:
👉 IRS.gov/Form9465

This option is ideal if:

  • You’re mailing your tax return

  • You owe more than $50,000

  • You want a manual review of your financials

Mailing takes longer than applying online, but it is still free.

Step 4: Request an Installment Agreement by Phone

You can also request a payment plan by calling the IRS:

📞 1-800-829-1040 (Individual taxpayers)
📞 1-800-829-7650 (Automated Collections System)

You may need to call if:

  • Your tax account is already in collections

  • You want to negotiate a lower monthly payment

  • Your financial situation is complex

  • You owe more than $50,000

Again — no charge. The IRS does not require any third-party representative.

Step 5: Avoid IRS Penalties While You’re on Your Payment Plan

Once your IRS payment plan is approved:

✔ Always pay on time

Missing payments can cause the IRS to cancel your agreement.

✔ File all future tax returns

If you miss a return, your plan can default.

✔ Make extra payments when possible

This reduces interest and pays your debt off faster.

✔ Fix your withholding or estimated taxes

You can’t owe future taxes while on a payment plan.

These simple habits help you stay compliant and avoid IRS collections.

Why Tax Relief Companies Don’t Want You to Know This

Many tax relief firms base their business model on charging taxpayers for simple IRS procedures like installment plans.

But the truth is:

  • The IRS does not negotiate most payment plans

  • Payment plan approval is standardized

  • The IRS website is designed for the everyday taxpayer

  • You can do everything yourself in minutes

Paying someone $3,000+ for something you can request on the IRS website is unnecessary.

Frequently Asked Questions

Is there any fee at all to request an installment plan?

Applying is free.
If you choose automatic bank withdrawals, there is no setup fee.

Does an IRS installment plan affect my credit?

No. IRS payment plans do not appear on your credit report.

Can I pay extra or pay off early?

Yes. There are zero penalties for early payoff.

Can I change my monthly payment?

Yes. You can revise your installment agreement online or by calling the IRS.

Final Thoughts: Requesting an Installment Agreement Is Easy — and Free

The IRS wants taxpayers to resolve their debts without financial hardship.
That’s why installment agreements are:

✔ Free
✔ Simple
✔ Automatic
✔ Accessible online

You do not need a tax relief company to request a payment plan.
You can complete the entire process yourself — and keep your money where it belongs.

If you’re unsure what type of installment agreement is right for you or need help reviewing your IRS notice, we’re here to help with honest, affordable support.

👉 Contact us for personalized IRS guidance without the high-pressure sales tactics.

Mitchell Levinirs, taxes, installment agreement