IRS Payment Plan
Monthly Payment Calculator
Estimate your monthly payment, setup fees, and total cost for an IRS installment agreement based on current IRS guidelines.
IRS Payment Plan Options
Short-Term Payment Plan
- Pay within 180 days or less
- No setup fee for online applications
- Interest and penalties still accrue
- Available for any debt amount
Long-Term Installment Agreement
- Pay over up to 72 months
- Setup fees from $29 (online + direct debit)
- The IRS publishes balance thresholds for applying online
- Reduced failure-to-pay penalty (0.25%/month)
Streamlined vs. Non-Streamlined Agreements
| Feature | Streamlined | Non-Streamlined |
|---|---|---|
| Maximum Debt Amount | At or below the IRS threshold | Above the IRS threshold |
| Financial Disclosure Required | No | Yes (Form 433-F) |
| Tax Lien Filed | Usually not | Likely |
| Application Process | Simple, online | More documentation |
| Approval Time | Immediate (online) | 30-90 days |
| Direct Debit Required | Above the IRS threshold | Often required |
IRS Setup Fee Structure
$29
Online + Direct Debit
Lowest available fee
$69
Online, no direct debit
Applying online is always cheaper
$178
Phone, mail or in person
Without direct debit. With direct debit it is $107.
Important Information
Interest and Penalties Continue
While a payment plan stops aggressive collection actions, interest and the failure-to-pay penalty continue to accrue on your unpaid balance. However, the failure-to-pay penalty is reduced from 0.5% to 0.25% per month when you have an approved installment agreement.
Staying Compliant
To keep your installment agreement in good standing, you must file all required tax returns on time, pay all taxes due in future years, and make your installment payments by the due date. Defaulting on your agreement can result in the IRS canceling it and resuming collection activities.
Disclaimer: This calculator provides estimates based on current IRS guidelines. Interest rates are approximate and may vary based on federal rates. Actual installment agreement terms depend on your specific situation, tax compliance history, and IRS review. This is not tax advice. Consult a tax professional for guidance specific to your situation.