---
title: "IRS Payment Plans"
description: "Can't pay your tax bill in full? How IRS short-term payment plans and installment agreements work, who can apply online, and setup fees."
url: https://markpattyaccounting.com/resources/irs-payment-plans
lang: en
last_modified: 2026-09-30
---
# IRS payment plans: what to do when you can't pay in full

## Quick 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) | $29 | $107 | Fee waived |
| Other payment methods (check, money order, card, EFTPS) | $69 | $178 | $43, which may be reimbursed if certain conditions are met |

Card payments carry processing fees.

right one. [Talk to Mark] [Call (704) 471-1414]

## 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](https://markpattyaccounting.com/resources/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](https://markpattyaccounting.com/resources/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
- IRS, Payment plans (installment agreements): https://www.irs.gov/payments/payment-plans-installment-agreements

## Related services
- IRS Letters & Tax Resolution in Shelby: https://markpattyaccounting.com/services/irs-help

---

Mark Patty & Associates, LLC
724 South Morgan Street, Shelby, NC 28150
Phone: (704) 471-1414
Hours: Monday to Friday, 8:00 AM to 5:00 PM. After hours by appointment.
Page: https://markpattyaccounting.com/resources/irs-payment-plans