If you would like to apply for an installment agreement to pay your federal taxes over time, you may do so by phone or mail (for a fee of $225) or online (fees may apply). For taxpayers owing less than $50,000, you are encouraged to establish an installment agreement online. Applying online does not charge a fee for paying "now" or a short-term plan (paying in under 120 days). There is a fee if you are requesting a long-term payment plan (paying in more than 120 days). The setup fee for a long-term payment plan is as follows:

• $31 if the payments will be made via automatic withdrawals
• $149 if the payments will not be made automatically

As such, the most inexpensive installment agreement option is to apply online and setup direct debit payments.

Visit this link to start an Online Application for an Installment Agreement

To apply by paper, you’ll need to complete Form 9465: Installment Agreement Request

• The information you will need to request an installment agreement is:
  • Name exactly as it appears on your most recently filed tax return
  • Valid e-mail address
  • Address from most recently filed tax return
  • Date of birth
  • Filing status
  • Your Social Security Number or Individual Tax ID Number (ITIN)
• To confirm your identity, you will need:
  • Financial account number or
  • Mobile phone registered in your name or
  • Activation code received by postal mail (takes 5 to 10 business days)

If you previously registered for an Online Payment Agreement, Get Transcript, or an Identity Protection PIN (IP PIN), you should log in with the same user ID and password. You will need to confirm your identity by providing the additional information listed above if you haven’t already done so.