When a taxpayer applies for an installment agreement with the IRS, the IRS charges them a setup fee. For long-term monthly payment agreements, if the total tax including prior years, interest, and penalties is less than $50,000, taxpayers can apply for an installment agreement online rather than by filing Form 9465, and the application setup fees are lower using the online application.
For more information about how an installment agreement works, as well as applying for an agreement or making changes to an existing agreement, visit the IRS Online Payment Agreement Application page.
Long-term Payment Plan (Monthly Agreement)
| Payment Method | Application Fee | |
| Using the online payment application |
Not using the online payment application |
|
| Direct Debit | $31* | $107* |
| Check, Money Order, Credit Card, or Debit Card | $130* | $225* |
| A "low-income taxpayer" (AGI less than or equal to 250% of the federal poverty guideline) may be able to reduce or eliminate the installment agreement user fee. See Form 13844 for more information. | ||
There will be additional fees when making payments that are not using the direct debit option. Also note that individual taxpayers that owe more than $25,000 in tax, and business taxpayers that owe more than $10,000 in tax, are required to use the Direct Debit Installment Agreement option.
Note: This is brief overview of installment agreement fees and is not intended as tax advice.
Additional Information:
IRS: Instructions for Form 9465
IRS: Online Payment Agreement Application
IRS: Topic No. 202, Tax payment options
IRS: Form 13844 - Application for Reduced User Fee for Installment Agreements (for low-income taxpayers)