Paying the IRS over time.
The monthly payment, the setup fee, interest and the late-payment penalty for your balance, before you apply.
Your plan
Monthly payment
$391.00
24 payments from Nov 30. Total $9,413, of which $913 is interest, penalty and the fee.
- Balance today
- $8,500
- Setup fee
- $29
- Interest and penalty over the plan
- $884
- Total paid
- $9,413
Plans you can get.
By the IRS manual's rules for your balance (individual income tax, all returns filed).
- Pay in full nowInterest and penalties stop growing today.
- Short-term plan (up to 180 days)Up to 180 days, no setup fee. Up to 6 months.
- Guaranteed installment agreementThe IRS must accept it; paid in full within 3 years. Up to 36 months.
- Simple Payment PlanTerm up to the collection deadline; no financial statement. Up to 119 months.
- Installment agreement with financial statementForm 9465 with Form 433-F/433-A/433-H; by phone or mail. Up to 119 months. Financial statement required.
- Partial payment or currently not collectibleIf you cannot pay in full before the collection deadline. Up to 119 months. Financial statement required.
Payment schedule.
| Payment | Paid | Interest | Balance after |
|---|---|---|---|
| 1, Nov 30 | $391.00 | $50.68 | $8,180.93 |
| 2, Dec 30 | $391.00 | $47.20 | $7,857.40 |
| 3, Jan 30 | $391.00 | $46.85 | $7,532.55 |
| 4, Mar 2 | $391.00 | $44.91 | $7,204.78 |
| 5, Mar 30 | $391.00 | $38.79 | $6,869.91 |
| 6, Apr 30 | $391.00 | $40.96 | $6,536.23 |
| 7, May 30 | $391.00 | $37.71 | $6,198.33 |
| 8, Jun 30 | $391.00 | $36.96 | $5,858.70 |
| 9, Jul 30 | $391.00 | $33.80 | $5,514.93 |
| 10, Aug 30 | $391.00 | $32.88 | $5,169.26 |
| 11, Sep 30 | $391.00 | $30.82 | $4,820.56 |
| 12, Oct 30 | $391.00 | $27.81 | $4,467.87 |
| 24, Oct 30 | $390.78 | $2.24 | $0.00 |
Interest at the IRS underpayment rate, compounded daily; future quarters use the latest published rate. Failure-to-pay penalty at 0.25% a month during the plan if the return was filed on time, otherwise 0.5%, capped at 25%.
Questions people ask
How much is the IRS payment plan setup fee in 2026?
Online with automatic bank debit $29; by phone, mail or in person $107. Without direct debit $69 online or $178 otherwise. Low-income taxpayers pay nothing with direct debit or $43 without it, which may be reimbursed. Short-term plans have no setup fee.
How do I apply for an IRS payment plan, and what is the phone number?
Individuals can apply online when they owe $50,000 or less in combined tax, penalties and interest for a long-term plan, or less than $100,000 for a short-term plan of up to 180 days. To apply or change a plan by phone, the IRS lists 800-829-1040 for individuals and 800-829-4933 for businesses.
What is the Simple Payment Plan?
Since July 2026 the IRS manual lets individuals with an assessed balance up to $50,000 pay over the time left on the collection statute without a financial statement and without a required direct debit.
Does interest stop on a payment plan?
No. Interest keeps compounding daily at the IRS underpayment rate (7% a year from Oct 1, 2026), and the failure-to-pay penalty drops from 0.5% to 0.25% a month while the plan is in effect if you filed on time.
Sources
- IRS: Payment plans; installment agreements
- IRS: Instructions for Form 9465
- IRM 5.14.5
- IRS: Quarterly interest rates
- IRS: Failure to pay penalty
Checked against these sources on October 30, 2026.