An IRS installment agreement can make paying your tax debt less overwhelming by breaking it into monthly payments. But what happens if your financial situation changes after you’ve set it up? Many taxpayers wonder if they can change or manage their IRS installment agreement payment plan. The good news is YES, you can. Read below to know more.
Can You Change an IRS Installment Agreement?
Yes. The IRS allows taxpayers to revise or manage their installment agreements if their circumstances change. The most common reasons to request changes include:
- You can no longer afford the monthly payment amount.
- You want to switch to a direct debit or payroll deduction to avoid missed payments.
- You need to update your bank account information.
- You want to change the due date for payments.
- You’ve defaulted and need to reinstate your plan.
How do you Manage or Revise Your Installment Agreement?
There are multiple ways to make changes to your agreement, such as:
1. Online Payment Agreement Tool
This is the easiest way to make changes to your agreement as it saves you the most time and takes the least amount of effort. By using the IRS Online Payment Agreement (OPA) system, you can log in, view your plan, adjust payment amounts, change due dates, or switch to direct debit.
2. By Phone
Your installment agreement notice lists a number which you can call for any requests pertaining to said installment agreement. With this method, you can speak directly to an IRS representative. This method is more advantageous if your situation is complex.
3. By Mail
In some cases, you may need to submit Form 9465 (Installment Agreement Request) again, especially if you are requesting significant changes.
Is There a Fee to Revise an Agreement?
Yes, the IRS may charge a reinstatement or revision fee, depending on the changes. However, low-income taxpayers may qualify for a waiver or reduced fee. Setting up direct debit often comes with lower costs and reduces the risk of default.
Final Thoughts
Yes, you absolutely can change or manage your IRS installment agreement payment plan. Whether it’s lowering your payments, updating your bank information, or switching to direct debit, the IRS provides options to help you stay on track.
If you’re worried about managing your plan or risk default, working with a tax professional can give you the guidance you need and help you negotiate the best terms. At the Law Office of Steven N. Klitzner, we help taxpayers revise their payment plans, reinstate agreements after default, and explore other IRS relief options. Call us today to learn more.
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
