IRS Installment Agreement Calculator
Calculate IRS payment plan costs, timeline, and requirements.
Installment agreement: penalty reduced from 0.5% to 0.25%
Payment Plan Summary
Total Debt:$ 25000.00
Monthly Payment:$ 500.00
Payoff Time:62 months (5.17 yrs)
Cost of Payment Plan
Total Interest:$ 5565.40
Total Penalty:$ 173.92
Additional Cost:$ 5739.32
Total Paid:$ 31000.00
Interest Rate:8.0%/yr
Penalty Rate:0.25%/mo
IRS Requirements
Minimum Payment (72 months):$ 519.10/mo
Fresh Start Eligible:Yes
Installment Agreement Types
- Streamlined IA: Debt under $50K, no financial disclosure, 72 months max
- Guaranteed IA: Debt under $10K, 36 months max, automatic approval
- Regular IA: Over $50K requires Form 433-F financial disclosure
- Partial Payment: Can't pay full amount, debt forgiven after term
- Direct Debit: Automatic payments, penalty reduced to 0.25%
Setup Fees
- Online application: $31 (reduced fee)
- Phone/mail application: $225
- Direct debit agreement: $31
- Low income: Fee waiver available
- Reinstatement after default: $89
Benefits of Installment Agreement
- Penalty reduced from 0.5% to 0.25% per month
- Avoids enforced collection (levies, garnishment)
- Interest continues but lower penalty
- Stay compliant: file and pay future taxes on time
- Can request modification if circumstances change
- Fresh Start: easier approval for debts under $50K