IRS Tax Relief payment plan fees

Setting up an IRS payment plan costs $0 for a short-term plan of 180 days or less, and $29 to $178 for a long-term plan depending on how you apply and pay, with lower fees or none for low-income applicants.

A payment plan is an agreement with the IRS to pay what you owe over a longer stretch of time. The IRS calls the long-term version an installment agreement, and it suggests asking for one if you believe you can pay the full balance within that time.

A plan doesn't lower the amount. Interest and a monthly late-payment penalty keep being added until the balance is paid, so the shorter the plan, the less it costs you overall.

What it costs to set up

These figures come from the IRS page Payment plans; installment agreements, last reviewed by the IRS on August 13, 2026. The fee section was updated March 3, 2026. Fees can change, so check that page before you apply.

Plan	Setup fee on the IRS table
Short-term, 180 days or less	$0. Online applications are for individual taxpayers. Penalties and interest can still accrue.
Long-term, paid by direct debit from a bank account	$29 online. $107 by phone, mail, or in person. Waived for low-income applicants.
Long-term, paid another way	$69 online. $178 by phone, mail, or in person. $43 for low-income applicants, which may be reimbursed.
Changing an existing plan	$6 online. $89 by phone, mail, or in person, with lower amounts for some low-income changes. $0 fee for changes made to existing Direct Debit installment agreements.

Who can apply online

The IRS page says an individual may qualify to apply online for a long-term plan when their combined tax, penalties, and interest are $50,000 or less and their required returns are filed. A short-term plan online is for a balance under $100,000.

If you owe more than that, the same page points to Form 9465 and to the phone numbers printed on IRS notices.

If your income is low

The low-income fee rules apply to individual taxpayers whose adjusted gross income is at or below 250 percent of the federal poverty level, for agreements on or after April 10, 2018.

When it helps to talk to someone

You can set up a plan yourself at IRS.gov when you qualify to apply online. You may want someone to look at the whole picture first, for example when the balance is over the online limits, returns are missing, or a monthly payment wouldn't be affordable. The form on this page asks a partner tax-relief firm to call you in that case.

What to do when you owe the IRS and can't pay compares a plan with an offer in compromise and a temporary delay of collection when a plan isn't enough on its own. A CP14 starts with what that notice means.

The Spokane page covers what's different in Washington.