The short answer
If you can pay within 180 days, a short-term payment plan has no setup fee. If you need longer, a long-term payment plan (installment agreement) lets you pay monthly; setup fees start at $29 online with automatic payments. Penalties and interest keep adding up until the balance is paid, so paying sooner costs less.
Short-term payment plan
- Pay the full balance in 180 days or less
- $0 setup fee
- Individuals can apply online if they owe less than $100,000 in combined tax, penalties and interest
- Penalties and interest continue until the balance is paid
Long-term payment plan (installment agreement)
- Pay in monthly payments
- Individuals can apply online if they owe $50,000 or less in combined tax, penalties and interest, and have filed all required returns
- Penalties and interest continue until the balance is paid
Setup fees
| How you pay | Apply online | Apply by phone, mail or in person | Low-income taxpayers |
|---|---|---|---|
| Automatic payments from your checking account (Direct Debit Installment Agreement) | Apply online$29 | Apply by phone, mail or in person$107 | Low-income taxpayersFee waived |
| Other payment methods (check, money order, card, EFTPS) | Apply online$69 | Apply by phone, mail or in person$178 | Low-income taxpayers$43, which may be reimbursed if certain conditions are met |
Card payments carry processing fees.
Owe more than you can pay? We'll look at your options and help you apply for the right one.
Related service: IRS Letters & Tax Resolution in Shelby
Businesses
Business taxpayers generally apply by calling the number on their notice or 800-829-4933, or by visiting an IRS Taxpayer Assistance Center.
Before you apply
- Check your balance first. Your IRS online account shows what you owe by tax year, and it's where you apply for a plan online. You sign in with ID.me. → Your IRS Online Account
- File every required return first. Unfiled years can block a long-term plan.
- Pay what you can now. Every dollar paid early reduces penalties and interest.
- Choose automatic payments if you can. They cost less to set up and help you avoid missed payments.
- Keep current. Missing payments or filing late in future years can put the plan at risk.
Official sources
This guide is general information, not advice for your situation. Tax rules change; check with us or the official source before acting.