Short term planvsLong term plan
Time to pay
Up to 180 daysMonthly payments over time
Setup fee
$0$29 to $178
Apply online if you owe
Less than $100,000$50,000 or less, all returns filed
The short answer
Short plans are free but end in 180 days. Long plans cost a fee but run monthly.
Short term plan vs Long term plan at a glance
| Short term plan | Long term plan | |
|---|---|---|
| Time to pay | Up to 180 days | Monthly payments over time |
| Setup fee | $0 | $29 to $178 |
| Apply online if you owe | Less than $100,000 | $50,000 or less, all returns filed |
| Who can apply online | Individuals only | Individuals. Businesses call. |
| Interest and penalties | Keep adding up | Keep adding up. Late pay penalty drops to 0.25% if filed on time. |
What to know
A short plan costs nothing to set up, so it fits if you can pay soon.
A long plan with direct debit has the lowest long plan fee, $29 online.
Low income filers can get the long plan fee waived with direct debit.
Short term plan may fit if
- You can pay in full within 180 days
- You want no setup fee
Long term plan may fit if
- You need more than 6 months
- You want automatic payments
- You may want the $25,000 lien withdrawal path
Results depend on your situation. Not every case qualifies.