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How to arrange a payment plan with the IRS

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    • 1). Have less than $25,000 owed in taxes, penalties and interest. If you owe more than that, a payment plan can be set up but only on an individual basis through an IRS agent.

    • 2). Go online at irs.gov and call up the IRS' payment plan application.

    • 3). Have the necessary information ready to go. You will need your social security number, PIN (personal identification number), birth date, your tax return and the caller ID number from your latest IRS notice. You also need to know what is the most you can afford to pay and how often you can make that payment.

    • 4). Fill out the application and submit it to the IRS. You will have an answer immediately.

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