--- title: IRS Payment Plans: Fees, Limits and How to Apply | TaxTruce url: https://taxtruce.com/coverage/installment-agreement updated: 2026-10-29 --- # IRS payment plans, plain and simple Pay over time. Fees start at $0. Updated October 8, 20263 sources[Fact checked](/editorial-standards) The short answer A payment plan lets you pay the IRS over time. A short plan gives you up to 180 days with no setup fee. A long plan lets you pay each month. Interest and some penalties keep adding up until you pay it all. ## Who it fits People who can pay the full debt if they get more time. Who it fits : Can pay over time Cost : Short plan: $0 fee, up to 180 days. Long plan: $29 to $178 setup fee, based on how you apply and pay. IRS form : Form 9465, or apply online ## What to know first **Short term plan** Pay in 180 days or less. There is no setup fee. Only people, not businesses, can apply online, and only if they owe less than $100,000. **Long term plan, auto pay** Monthly payments from your bank. The setup fee is $29 online, or $107 by phone, mail or in person. **Long term plan, other ways** Pay each month by Direct Pay, card or check. The setup fee is $69 online, or $178 by phone, mail or in person. **Low income help** If your income is at or below 250% of the poverty line, the fee is waived with auto pay. Without auto pay it is $43, and you may get it back. **Levies usually pause** While a plan request is pending, the IRS is generally not allowed to levy, with some exceptions. **Smaller penalty while you pay** If you filed on time, the late payment penalty drops from 0.5% to 0.25% a month during an approved plan. ## Common questions Can I set up a plan online? Often, yes. You may apply online for a long term plan if you owe $50,000 or less and filed all returns. For a short term plan online, you must owe less than $100,000. Source: [IRS: Payment plans and installment agreements](https://www.irs.gov/payments/payment-plans-installment-agreements) What if I owe more than $50,000? You can still ask for a plan. You may need to apply by phone or mail, and the IRS may ask about your income and bills first. Source: [IRS: Understanding your LT11 notice or Letter 1058](https://www.irs.gov/individuals/understanding-your-lt11-notice-or-letter-1058) ยท [IRS: Payment plans and installment agreements](https://www.irs.gov/payments/payment-plans-installment-agreements) Does interest stop on a plan? No. Interest and some penalties keep adding up until the balance is paid in full. Source: [IRS: Payment plans and installment agreements](https://www.irs.gov/payments/payment-plans-installment-agreements) Can I change my plan later? Yes. Changing it online costs $6. By phone, mail or in person it costs $89. Changes to a direct debit plan are free. Source: [IRS: Payment plans and installment agreements](https://www.irs.gov/payments/payment-plans-installment-agreements) Results depend on your situation. Not every case qualifies. ## More guides [**How do I set up an IRS payment plan?**](/answers/how-do-i-set-up-an-irs-payment-plan)[**How much is the IRS payment plan fee?**](/answers/how-much-is-the-irs-payment-plan-fee)[**What is the IRS payment plan interest rate?**](/answers/irs-payment-plan-interest-rate)[**Can I get a payment plan if I owe over $50,000?**](/answers/payment-plan-over-50000)[**Short term vs long term IRS payment plan?**](/answers/short-term-vs-long-term-payment-plan)[**What happens if I miss an IRS payment plan payment?**](/answers/missed-irs-payment-plan-payment)[**What is Form 9465?**](/answers/what-is-form-9465) ## Sources 1. [IRS: Payment plans and installment agreements](https://www.irs.gov/payments/payment-plans-installment-agreements) 2. [IRS: Failure to pay penalty](https://www.irs.gov/payments/failure-to-pay-penalty) 3. [IRS: Understanding your LT11 notice or Letter 1058](https://www.irs.gov/individuals/understanding-your-lt11-notice-or-letter-1058) Other ways to get help ## Compare with the others [Can't pay in full ### Offer in compromise Ask the IRS to take less than you owe. Hard to get. See offer in compromise](/coverage/offer-in-compromise)[Can't pay at all ### Not collectible The IRS pauses collection while money is too tight. See not collectible](/coverage/currently-not-collectible)[Hit with penalties ### Penalty relief Ask the IRS to remove late filing or late payment penalties. See penalty relief](/coverage/penalty-abatement) Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.