Why modify: If you lose income, face medical bills, or have a sudden expense, a modification can prevent default, collection actions, and additional penalties. The IRS evaluates requests case-by-case; changes are not automatic.

Quick checklist (what you’ll need)

  • Recent pay stubs, profit-and-loss statements, or unemployment proof
  • Bank statements and recent bills (rent, mortgage, medical)
  • A current budget or financial statement (Form 433-F, or Form 433-A/433-B if requested)
  • Copy of the existing installment agreement or IRS notice

Step-by-step process

  1. Identify the change you need
  • Lower monthly payment, change payment frequency, switch to direct debit, or extend the term.
  1. Gather documentation
  • For simple adjustments, two months of pay stubs and a current bank statement may suffice. For larger changes or partial-pay options, you’ll usually need a full financial statement (Form 433-F or the business/individual variants) showing assets, income, and living expenses. See our guide on preparing a financial statement for installment applications for details: “How to Prepare a Financial Statement for Installment Agreement Applications” (https://finhelp.io/glossary/how-to-prepare-a-financial-statement-for-installment-agreement-applications/).
  1. Choose how to submit the request
  • Online: Some streamlined changes can be made through your IRS Online Account or the Online Payment Agreement tool. The IRS page on installment agreements explains which actions are possible online. (IRS: “Installment Agreements” and “Online Payment Agreement” pages.)
  • Phone: Call the number on your IRS notice or the collections number if you’re already in collections. Have your documentation ready.
  • Mail: Send a written request with supporting documents to the address on your notice. If required, submit Form 433-F or Form 9465 (Request for Installment Agreement). Form 9465 initiates an installment agreement; an updated financial statement supports requests to reduce or restructure payments.
  1. What the IRS will review
  • Type of agreement (streamlined vs. partial-pay vs. guaranteed)
  • Your current and projected ability to pay
  • Supporting documentation and whether a Collection Information Statement is required
  1. If the IRS asks for more info
  • Respond promptly. If you don’t, the IRS can deny the request and may resume aggressive collection.

Timeline and fees

  • Typical processing time varies but often takes 30 days or longer depending on workload and whether the IRS requests additional documentation. Interest and penalties continue to accrue on unpaid tax until the balance is paid in full. A user fee may apply for some agreement changes; consult the IRS installment agreement page for the most current fee guidance (irs.gov/payments/installment-agreements).

When a full financial statement is needed

  • If you request a materially lower payment or currently not collectible status, expect to complete Form 433-F (or 433-A/433-B). That form documents your monthly income, expenses, assets, and liabilities and is used to calculate an affordable payment.

If your request is denied

Common mistakes to avoid

  • Waiting until you miss a payment. Request modifications before you default.
  • Submitting incomplete documentation. That causes delays or denials.
  • Forgetting that interest and penalties usually continue even after modification unless otherwise directed.

Sample request letter (short)
[Your name]
[Your SSN or EIN — last 4 digits only when emailing or writing]
[Address]
[Date]

Internal Revenue Service
[Address from your IRS notice]

Re: Request to modify installment agreement (Acct # [your account number])

I request a modification of my current installment agreement due to a change in financial circumstances. (Briefly state reason: job loss, medical expenses, etc.) Enclosed are my recent pay stubs, two months of bank statements, and a completed Form 433-F. I propose a new monthly payment of $___ starting [date]. Please contact me at [phone/email] if you need more information.

Sincerely,
[Signature]

Professional tips

  • Use direct debit if you can; it reduces default risk and may lower or eliminate setup fees.
  • Keep copies of everything you send and track mail with proof of delivery if you mail documents.
  • If you’re unsure how to complete Form 433-F, consult a tax professional or use our step-by-step resources.

Authoritative sources

Disclaimer
This article is educational and does not constitute tax advice. For help tailored to your situation, consult a qualified tax professional or attorney.

Related FinHelp guides