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Tax Debt Help in Illinois: IRS Options and Free Clinics

By the Tax Relief Answers editors · Sources checked November 3, 2026 · How we check

The short answer

Illinois residents can owe both the IRS and the Illinois Department of Revenue (IDOR), which collects state income tax and runs its own payment plans. IDOR offers a payment installment plan only after a balance reaches its Collections stage, shown by a Collection ID on your notice; you can then set one up through MyTax Illinois. For federal balances, the IRS lets individuals who owe $50,000 or less apply online for a payment plan, and 4 free Low Income Taxpayer Clinics serve Illinois from Chicago and West Chicago.

Federal vs state: who to contact for what

If the debt is federal

Individuals who owe $50,000 or less in combined tax, penalties and interest, with all returns filed, can apply online for an IRS payment plan. A short-term plan (up to 180 days) has no setup fee, and a long-term plan paid by direct debit costs $29 online as of October 2026, per the IRS payment plans page. If you cannot afford a plan, see our pages on the Offer in Compromise, Currently Not Collectible status and first-time penalty abatement, or start with the IRS payment plan page. Each can be requested directly from the IRS.

Illinois payment installment plans

The rules below come from IDOR's payment plan page and its payment options for individuals.

When you can apply. IDOR says payment plans are not available until a balance reaches the Collections stage. If your notice has a Collection ID in the upper right corner, you may be eligible. Before that, IDOR's advice is to file your return and pay whatever you can afford; penalties and interest apply to amounts paid after the due date.

How to apply. IDOR describes three routes:

1. Standard plan offered in MyTax Illinois. Select "Set up a Payment Installment Plan with IDOR". IDOR says the plan is approved if you accept the terms it presents.
2. Request your own terms through your MyTax Illinois account, if the standard terms do not fit. IDOR Collections staff review the request and tell you whether it is approved.
3. Paper form. File Form CPP-1, Payment Installment Plan Request. If the amount, including penalties and interest, is over $15,000, also file Form EG-13-I (individuals) or EG-13-B (businesses), a financial statement.

Conditions. You must have filed all tax returns through the current date, and all outstanding liabilities go into the same plan. IDOR sets the monthly amount and length based on your financial condition. IDOR encourages ACH debit for plan payments; credit card payments carry a provider convenience fee. IDOR's pages do not list a setup fee or a maximum plan length, so ask Collections at 1 888 261-2718 before you agree to terms.

Language help. IDOR's payment plan page is in English, but its language services page says it provides free interpreters by phone and in person, and its website can be translated with the language selector at the top of each page.

Free Low Income Taxpayer Clinics in Illinois

Low Income Taxpayer Clinics (LITCs) are independent organizations that receive IRS grants and represent people with the IRS for free or a small fee. They generally serve people with income at or below 250% of the federal poverty guidelines (for 2026, $39,900 for one person and $82,500 for a family of four) and amounts in dispute usually under $50,000, per the Taxpayer Advocate Service LITC page. They handle federal tax problems.

These are the Illinois clinics in IRS Publication 4134, Rev. 1-2026. The city is the main office; many clinics serve a wider area.

Publication 4134 lists each clinic's phone number and languages; the LITC page has the current clinic search tool.

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