Quick overview

An installment agreement spreads a federal tax balance into monthly payments. If your income, expenses, or goals change, you can usually modify the plan — or stop it if you pay off the balance, qualify for a different resolution, or enter bankruptcy. Follow formal IRS procedures to avoid defaults, liens, or levies (IRS: Installment Agreements).

Step-by-step: How to request a change

  1. Check eligibility and your payment history
  • Confirm the balance, outstanding penalties and interest, and whether prior defaults exist. If your plan is in default, review options for reinstatement or a new plan. See our guide on reinstating a defaulted installment agreement.
  1. Gather documentation
  • Pay stubs, business profit-and-loss statements, bank statements, and monthly household bills. The IRS may request Form 433-F (Collection Information Statement) or a Form 433-A/B for detailed financials.
  1. Choose how to contact the IRS
  • Online: Use the IRS Online Payment Agreement tool for many requests (fastest route; see IRS online services).
  • By phone: Call the number on your most recent IRS notice or the Collection phone line.
  • By mail: Submit a written request or Form 9465 when directed. Keep copies of everything.
  1. Propose a realistic payment
  • Offer a monthly amount you can sustain; the IRS evaluates your ability to pay. If you need a temporary pause, request Currently Not Collectible status instead of an impossible lower payment.
  1. Confirm and document the change
  • Get written confirmation of any new terms. Save emails, notices, and the revised agreement.

How cancellation works

  • Cancellation by the taxpayer: If you pay the balance in full, the agreement ends. Notify the IRS and obtain written confirmation that the account is closed.
  • Cancellation by the IRS: The IRS may cancel an agreement after default (missed payments) and pursue collection actions.
  • Cancellation for other reasons: Bankruptcy or a successful Offer in Compromise can end or replace an agreement. For partial-payment plans or other alternatives, see our article about streamlined installment agreements.

When the IRS will ask for financial details

Common pitfalls to avoid

  • Waiting to contact the IRS after missed payments — act early to avoid default.
  • Underestimating penalties and interest — they continue until the debt is paid or otherwise resolved.
  • Failing to get written confirmation of any change — verbal agreements are not reliable.

Alternatives to changing or cancelling

  • Offer in Compromise: Settle the debt for less than the full amount if you meet strict criteria (see IRS Offer in Compromise resources).
  • Currently Not Collectible (CNC): Temporarily pause payments if assets and income are insufficient.
  • Loan or refinancing: For some taxpayers, a lower-rate personal loan or a home-equity option can reduce total cost.

What to expect after you request a change

  • The IRS will review financials and either accept, negotiate, or deny the modification.
  • If accepted, they will send a written confirmation with new terms. Continue on-time payments under the revised plan to avoid default.

Practical tips from practice

In my work with clients, clear documentation and early communication are the most effective defenses against default. Always prepare a simple budget showing income and unavoidable expenses before calling the IRS — it accelerates decisions and reduces back-and-forth.

Professional disclaimer: This article provides general information and is not legal or tax advice. For advice about your specific situation, consult a qualified tax professional or attorney.

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