How to Revise an IRS Payment Plan

For U.S. readers: This article discusses U.S. rules and financial products. State rules and individual eligibility may differ.

Quick answer

Some existing individual installment agreements can be changed through the IRS Online Payment Agreement system. Available actions can include changing the monthly amount or due date, converting to direct debit, or reinstating after default, depending on the account and IRS rules. If the online system does not offer the needed change, use the contact instructions on the IRS notice or official payment-plan page. Continue complying with the existing agreement until the IRS confirms a change. Finelo provides general education, not tax, legal, accounting, or financial advice.

Use the current IRS Online Payment Agreement application rather than a third-party debt-relief service.

Before requesting a change

Review:

• the current balance, including penalties and interest;
• the agreement's required monthly amount and due date;
• whether all required returns have been filed;
• whether a new tax balance has been added;
• any notice of proposed termination or default;
• the bank account used for direct debit; and
• the highest amount that can be paid reliably each month.

Interest and applicable penalties generally continue until the balance is paid. Lowering a monthly payment can extend payoff and increase the total paid.

Changes that may be available online

The IRS page lists management options that may include:

• viewing plan details;
• changing a monthly payment amount;
• changing a monthly due date;
• changing an agreement to direct debit;
• changing bank-routing or account information for direct debit; or
• reinstating an agreement after default.

Not every option is available for every account. Eligibility, fees, and required payment methods can depend on the balance, agreement type, and account status. Treat the choices displayed by the IRS system as account-specific.

Step-by-step process

1. Go directly to the IRS Online Payment Agreement page.
2. Sign in through the IRS identity-verification process.
3. Review the agreement and account balance shown.
4. Select only an action the system offers for that account.
5. Read any fee, direct-debit, and payment information before submitting.
6. Save the confirmation number or confirmation page.
7. Check future IRS notices and bank transactions to confirm the change took effect.
8. Keep making required payments under the confirmed terms.

If the online request is unavailable or the proposed payment is unaffordable, contact the IRS using the number on the notice or official page. Do not simply pay a lower amount without approval, because that can place the agreement at risk.

If financial circumstances changed

The IRS may request financial information when a taxpayer seeks terms outside streamlined online options. Possible records include income, necessary living expenses, assets, debts, and recent bank information. Provide only through an official IRS channel identified in an IRS notice or on IRS.gov.

Organize:

• proof of current income;
• essential recurring expenses;
• bank and asset balances;
• secured-debt payments;
• health or caregiving costs; and
• documentation of a job loss or other material change.

The documentation requirement depends on the requested relief and account. A generic checklist cannot guarantee approval.