Can I Change My Existing Tax Payment Plan?

Already on an IRS payment plan but struggling with your monthly payments — or experiencing a financial change? You may have options. This article applies to U.S. federal tax law and explains how to modify an existing IRS Installment Agreement. TaxRise helps taxpayers adjust their payment terms, reduce monthly burdens, and stay protected from enforcement.

Yes, you can change your existing IRS payment plan by requesting a modification, applying for a different type of Installment Agreement, or adjusting the monthly payment amount to reflect your current financial situation.

What This Means

If your financial situation has changed — for better or worse — the IRS allows you to request a payment plan modification. This could mean lowering your monthly payment, switching to automatic withdrawals, or extending the time to pay.

You must meet certain criteria and remain compliant with all IRS filing requirements to be eligible for a change.

Why It Happens

The IRS knows that financial situations aren’t static. Job loss, inflation, medical issues, or even overpaying can affect your ability to keep up with your monthly Installment Agreement. Rather than default, the IRS offers a chance to revise your plan to avoid falling behind — and to help you stay compliant.

Who Qualifies to Change Their Existing Tax Relief Plan?

• Taxpayers with existing Installment Agreements
• People who’ve experienced income loss, increased expenses, or other financial hardship
• Taxpayers looking to consolidate multiple tax years under one plan
• Individuals or businesses seeking a lower monthly payment

If you’ve missed a payment or anticipate missing one, it’s important to request a modification before the IRS places your account in default.

How to Change My IRS Payment Plan?

There are several ways to change your IRS payment plan:

• Modify an Existing Agreement Online: If you meet the criteria (generally owing less than $50,000), you can log into the IRS Online Payment Agreement Tool and submit a request.
• Call the IRS: Reach out to the IRS at 1-800-829-1040 to request a change by phone. Be ready with financial documentation if your new plan is income-based.
• Submit IRS Form 9465: This form is used to set up or revise a payment plan and can be mailed in with updated details.
• Switch to Direct Debit: If you’re on a manual payment plan, converting to auto-withdrawal may improve your chances of approval and avoid future missed payments.

Note: You must be current on all tax filings before a change will be accepted. If your debt has increased due to a new tax year, that must be factored into your updated plan.

Can I Switch to an Offer in Compromise or a Currently Not Collectible Status?

Yes, in some cases, you can switch from an IRS Installment Agreement to an Offer in Compromise (OIC) or request Currently Not Collectible (CNC) status — but you must meet the specific eligibility criteria for each program.

If your financial situation has significantly worsened since your original payment plan was set up, you may now qualify for a more favorable resolution:

• Offer in Compromise: If you can demonstrate that paying your full tax debt — even over time — would create undue financial hardship, the IRS may allow you to settle your debt for less than the full amount. You must submit a detailed financial application and make a reasonable offer based on your income, expenses, and assets.
• Currently Not Collectible (CNC) Status: If you’re unable to make any payments because your income barely covers necessary living expenses, the IRS may temporarily suspend collection actions. Interest continues to accrue, but you won’t have to make payments while in CNC status.

To switch from your current Installment Agreement, you must:

• Consult with a tax professional (highly recommended)
• Be current with all required tax filings
• Provide updated financial documentation to support your hardship
• Submit the appropriate forms — such as Form 433-A or Form 656 — depending on the tax resolution you’re seeking

Keep in mind that simply stopping your current payments without an approved alternative can cause your agreement to default and trigger IRS enforcement actions. That’s why it’s important to formally apply for the change, preferably with help from a tax relief expert.

How TaxRise Can Help

TaxRise helps taxpayers revise their IRS payment plans based on real financial needs. Whether you’re overwhelmed by your current payment or simply want to explore better options, our experts can negotiate directly with the IRS, potentially reduce monthly obligations, and ensure compliance — often without you having to call the IRS yourself.

Schedule a free consultation to see if you qualify to change your payment plan and reduce your financial burden.

Frequently Asked Questions

• Can I lower my monthly IRS payment?
  Yes. If you can prove financial hardship or qualify for a Partial Payment Agreement, the IRS may approve a lower monthly amount.
• What happens if I miss a payment?
  Missing a payment can cause your plan to default, leading to renewed collections. Contact the IRS or a tax professional immediately if you anticipate issues.
• Can I add new tax debt to an existing plan?
  Yes. The IRS typically allows you to modify your plan to include new balances as long as you're still eligible overall.

Reviewed by TaxRise Tax Professionals
This article was reviewed by the TaxRise Tax Professional Team. TaxRise has helped thousands of Americans eliminate millions in IRS and state tax debt. This content is for informational purposes only and is not legal or tax advice.