IRS Payment Plan Guide (2026) - Installment Agreement Options
IRS payment plan guide: installment agreement types, qualification, setup fees, and interest rates. Resolve tax debt over time.
Summary
IRS payment plans: short-term (180 days, no fee), long-term installment ($31-225 setup fee). Interest 8% (2026), penalty 0.5% monthly. Automatic approval if debt <$50K, compliance required.
Key Steps
- 1Short-term: 180 days maximum, no setup fee, interest still accrues.
- 2Long-term: installment agreement, $31 (online) or $225 (phone/mail) setup fee.
- 3Automatic approval: debt <$50K, filed all returns, compliance history.
- 4Interest rate: 8% (2026), penalty 0.5% monthly on unpaid balance.
- 5Compliance: file future returns on time, make all payments, no new debt.