Set up an IRS or California FTB payment plan
If you can't pay your balance in full, both the IRS and the Franchise Tax Board will let you pay monthly. Here's how to set up an IRS or FTB installment agreement yourself, and why most of our clients let us do it for them instead.
Applying on your own means creating an ID.me account, uploading a photo of your driver's license, taking a selfie, and getting through a series of screens that are easy to get wrong. A wrong answer can mean a rejected request, a higher setup fee, or a plan you can't actually afford. As your preparer, we can apply on your behalf, pick the plan that fits your situation, and confirm it was accepted, usually in one phone call.
Call (916) 971-9315. Have your bank routing and account number ready and we'll handle the rest.
If you'd rather do it yourself, everything below is accurate as of October 2026. It's longer than the payment instructions because there are more decisions to make.
Step zeroBefore you start
- All your returns must be filed. The IRS and FTB will not set up a plan if any return is missing. If you're behind, call us first; that's the fix.
- Know what you owe to each agency. It's on the copy of your return we sent you, or on the notice you received.
- Decide what you can pay each month. Be realistic. A missed payment can cancel the plan. The IRS wants the balance paid within 72 months; FTB within 60. Divide your balance by those numbers for the minimum.
- Bank routing and account number. Direct debit is the cheapest IRS option and is how FTB plans work. Both numbers are on the bottom of a check.
- For the IRS online: a smartphone, your driver's license, and your email. You'll need them for ID.me.
IRS at a glance
| Who qualifies online | Owe $50,000 or less, all returns filed |
| Short-term plan | Up to 180 days, no setup fee (owe under $100,000) |
| Long-term plan | Up to 72 months |
| Setup fee, online | $22 direct debit · $69 otherwise |
| Setup fee, by mail or phone | $107 direct debit · $178 otherwise |
| Penalties and interest | Continue, at a reduced penalty rate, until paid |
FTB at a glance
| Who qualifies online | Owe $25,000 or less, pay within 60 months, last 5 years of returns filed |
| Setup fee | $34, added to your balance |
| Payment method | Monthly direct debit from your bank account |
| Processing time | Up to 90 days; keep paying while you wait |
| Can't apply online if | You already have a plan, or a wage garnishment or levy is in place. Call instead. |
| Penalties and interest | Continue until paid |
If your income is at or below 250% of the federal poverty level, the IRS reduces or waives its setup fee. Ask us; it's a separate form (Form 13844) that's easy to miss.
Federal · Option 1IRS Online Payment Agreement
The cheapest way to set up an IRS plan, and the most confusing, because of the sign-in. Budget 30 to 45 minutes the first time.
Part A: Create an ID.me account
The IRS no longer lets you apply online without an ID.me login. ID.me is a private identity company the IRS uses to confirm you are who you say you are. If you already have an ID.me account from the IRS, Social Security, the VA, or California EDD, skip to Part B and use it.
Go to irs.gov/opa and click "Apply/Revise as Individual"
Use that address only. The IRS never emails or texts links to this page.
Choose "Create an account" with ID.me
Enter your email, create a password, and confirm your email from the message they send. Then set up multi-factor authentication; the simplest choice is a text message code to your phone.
Verify your identity
Choose "Self-Service." Upload a photo of the front and back of your driver's license or passport (take the photo with your phone; they'll text you a link to do it). Then take a selfie so they can match your face to the ID. Enter your Social Security number. This is the step people get stuck on: glare on the license, a selfie in poor light, or a name that doesn't match the ID exactly.
If self-service failsID.me offers a video call with an agent instead. Wait times run from a few minutes to over an hour. This is the point where most clients call us and let us apply on their behalf.
Allow ID.me to share your information with the IRS
Click "Allow" and you'll land back on the IRS site.
Part B: Apply for the plan
Confirm what you owe
The IRS shows the balances it has on file. If a balance is missing (a return you just filed may not have posted yet), stop and call us; applying now can leave that year out of the plan.
Choose the plan type
Short-term Pay in full within 180 days. No setup fee. Choose this if you can. Long-term Monthly payments. Choose direct debit to get the $22 fee. Enter the monthly amount and the day of the month
The IRS suggests a minimum (your balance divided by 72). You can pay more. Pick a day between the 1st and the 28th, a few days after you get paid.
Enter your bank routing and account number
For direct debit. Entered twice.
Review and submit
You'll get an immediate answer on screen: accepted, or more information needed. Print or screenshot the confirmation. A letter follows in the mail within a few weeks.
Federal · Option 2IRS by mail: Form 9465
No ID.me account needed, but the setup fee is higher ($107 with direct debit, $178 without) and it takes the IRS about 30 days to respond.
How to fill it out
| Top of form | Check the box only if you're attaching it to a return you're filing now. Enter the tax year(s) and form (1040). |
| Line 1a | Your name and Social Security number exactly as on your return; spouse too if you filed jointly. |
| Lines 3 and 4 | Home and work phone numbers and the best time to call. |
| Line 5 | The total amount you owe, from your return or notice. |
| Line 6 | Any other balances the IRS has already billed you for. Leave blank if none. |
| Line 7 | Line 5 plus line 6. |
| Line 8 | Any amount you're paying now with this form. Paying something up front reduces interest. |
| Line 9 | Line 7 minus line 8: what's left to pay over time. |
| Line 10 | Line 9 divided by 72. That's the minimum monthly payment. |
| Line 11a | The amount you'll actually pay each month. Must be at least line 10, or the IRS will ask for a financial statement (Form 433-F). |
| Line 12 | The day of the month (1st through 28th) you want payments drawn. |
| Lines 13a and 13b | Bank routing number and account number, for direct debit. Fill these in; it cuts the fee from $178 to $107 and avoids missed payments. |
| Line 14 | Check only if you'd rather have payments taken from your paycheck (requires Form 2159 with your employer). Most people skip this. |
| Signature | Sign and date. Both spouses sign for a joint return. |
Line numbers are from the current Form 9465. If the IRS revises the form, follow the labels, which say the same things.
Where to mail it
If you're attaching it to the return you're filing now, put it on top of the return and mail everything to the normal address for your return.
If you're mailing it by itself from California and your return has no Schedule C, E, or F:
Department of the Treasury
Internal Revenue Service
Stop P-4 5000
Kansas City, MO 64999-0250
If your return includes Schedule C, E, or F (self-employment, rental, or farm income):
Department of the Treasury
Internal Revenue Service
P.O. Box 9941, Stop 5500
Ogden, UT 84409
Keep a copy. Use a mailing method with tracking.
California · Option 1FTB payment plan online
Simpler than the IRS: no ID.me, no selfie. About 10 minutes.
Go to ftb.ca.gov/pay and click "Payment plan"
Then "Apply online." The page checks the eligibility rules first: $25,000 or less, 60 months or less, last five years filed, no existing plan or garnishment.
Sign in
Enter your Social Security number and the information the screen asks for to confirm your identity. If you filed jointly, use the person listed first on the return.
Enter the monthly payment and the day of the month
No later than the 28th. The balance must be paid off within 60 months, so divide your balance by 60 for the minimum.
Enter your bank routing and account number
FTB plans are paid by automatic monthly withdrawal. A regular checking or savings account; no prepaid cards.
Agree to the conditions and submit
You're agreeing to pay on time, keep money in the account, file future returns on time, and pay future taxes on time. Save the confirmation. FTB can take up to 90 days to formally approve the plan. Keep making the monthly payment in the meantime, through Web Pay, so penalties and collections don't start.
California · Option 2FTB by mail: Form 3567
Same $34 fee as online. Use this if you can't get through the online eligibility check or prefer paper.
How to fill it out
Read page 1 (the conditions), then fill out and sign page 3. Pages 1 and 2 stay with you.
| Name and SSN | Yours, and your spouse's or RDP's if the balance is from a joint return, in the same order as on the return. |
| Address and phones | Current mailing address; home and work numbers. |
| Box 1 | The amount you'll pay each month. Balance divided by 60 is the minimum. |
| Box 2 | The day of the month for the withdrawal, no later than the 28th. |
| Signature for the request | Sign and date. Both spouses or RDPs if joint. |
| EFT Authorization | Printed name, phone, signature, and date for each person; bank name and address; routing number; account number; checking or savings. This is required; FTB plans are direct debit. |
Where to mail it
Franchise Tax Board
PO Box 2952
Sacramento, CA 95812-2952
Do not attach it to a tax return. Do not send it if you already have a plan or a wage garnishment; call FTB at (800) 689-4776 instead, or call us.
AfterwardAfter you apply
- Keep paying while you wait. The IRS answers in about 30 days by mail; FTB can take 90. Payments made in the meantime count and reduce interest.
- File every future return on time and pay what it shows. A new unpaid balance or a late return cancels the plan with both agencies, and reinstating it costs another fee.
- Interest and penalties keep running on the unpaid balance. Paying extra, or paying it off early, is always allowed and always saves money.
- Adjust your withholding so next year you don't owe again. FTB makes you agree to this as a condition of the plan. We can run the numbers.
- If you can't make a payment, call the agency before the due date, or call us. A plan can be changed; a missed payment is harder to undo.
- Owe more than $50,000 to the IRS or $25,000 to FTB? You can still get a plan, but it requires a financial statement and usually a lien. Don't attempt that one alone; call us.
We're hereStill rather not?
Call (916) 971-9315, Monday through Friday, 9:00 am to 4:00 pm. We'll apply on your behalf, usually in a single call of 30 minutes or less, and confirm when it's accepted. Se habla español.
2026 Fall Newsletter
Find Out More
Mid Year Newsletter 2026
Find Out More