It's not a formal payment option, so there's no need to apply for it or pay any fees, but interest and penalties will continue to accrue until the tax debt is paid in full. Make the request online through the online payment agreement tool or by phone or by mail by submitting form 9465, Request for Installment Agreement. Your specific tax situation will determine what payment options are available to you. Payment options include full payment, a short-term payment plan (payment in 180 days or less), or a long-term payment plan (installment agreement) (monthly payment).
If the IRS determines that you can't pay any of your tax debts due to financial difficulties, you can temporarily delay collection by stating that your account is currently uncollectible until your financial situation improves. IRS installment plans don't affect your credit and the IRS doesn't report them to any of the credit reporting agencies. Dealing with the IRS can be stressful, so there are many tax relief companies that can help taxpayers negotiate with the IRS to set up payment plans and settle their tax debts. Applicants must submit the form to the IRS within 30 days of the date of their letter of acceptance of the installment agreement to ask the IRS to reconsider their situation.
