Short-Term Payment Plan

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A short-term payment plan is the simplest and most straightforward way to resolve an IRS balance when you cannot pay in full immediately but can pay the full amount within 180 days. It is an informal arrangement — not a formal installment agreement — that gives you a little breathing room to gather the funds needed to pay your tax debt.

The IRS makes this option easy to access. You can apply online at IRS.gov in minutes with no setup fee for online applications.

You may qualify if:

• You owe $100,000 or less in combined tax, penalties, and interest
• You can pay the full balance within 180 days
• You are current on all tax return filings
• You are not currently in bankruptcy proceedings

Online (fastest and easiest):
Visit IRS.gov and use the Online Payment Agreement (OPA) tool. You can set up a short-term plan in minutes with no setup fee.

By phone:
Call the IRS at 1-800-829-1040. A representative can set up the plan over the phone.

By mail:
Submit Form 9465 (Installment Agreement Request) with a note requesting a short-term arrangement.

• Setup fee: $0 for online applications
• Interest: Continues to accrue daily at the federal short-term rate plus 3%
• Failure-to-pay penalty: Continues at 0.5% per month on the unpaid balance

While interest and penalties continue during the 180-day period, they are significantly less costly than missing the deadline and triggering enforced collection.

• No formal installment agreement required
• No setup fee for online applications
• Stops most collection action while the plan is active
• Simple and fast to set up — often done in minutes
• No financial disclosure required
• Preserves your options if your situation changes

 If you reach the end of the 180-day period and cannot pay in full, you will need to convert to a formal long-term installment agreement. It is better to proactively contact the IRS before the deadline rather than simply letting the plan lapse.