Setting up a payment plan incurs initial administrative fees. For a long-term plan with direct debit, the fee is $22, which may be waived for low-income applicants. Non-direct debit plans cost $69 ...

Facing tax debt can be daunting, but the IRS offers solutions to ease the burden. Discover how to qualify and apply for a payment plan that suits your needs, whether it's a short-term or long-term ...

The IRS offers two main types of payment plans: short-term and long-term. A short-term payment plan is suitable for those who owe less than $100,000 in combined taxes, penalties, and interest.

Short-Term Payment Plan – Available for taxpayers who owe less than $100,000 in combined tax, penalties, and interest. This plan allows up to 180 days to pay off the full balance.

IRS Payment Plan Pros You could pay less in interest and fees: With IRS payment plan interest rates at 8% and the lower penalty rate of 0.25% per month, it's possible that you'll have lower ...

The IRS does not state a limit on how much it will accept for a payment plan. But people who apply for IRS payment plans online must have less than $100,000 in unpaid taxes (including penalties ...

Stock image/file photo: An IRS Form 1040 for income taxes. GETTY How To Set Up a Payment Plan Most individual taxpayers are eligible for a payment plan, of which there are two: Short-Term Payment ...