Slash Your Debt Hassle-Free IRS Payment Plan Setup

Costs Associated with IRS Payment Plans

While setting up a payment plan can alleviate immediate financial pressure, it’s important to be aware of the costs involved. There is typically a setup fee for long-term payment plans, which can range from $31 to $225 depending on your payment method and income level. Low-income taxpayers might qualify for reduced fees or even fee waivers¹.

Additionally, interest and penalties on your unpaid balance will continue to accrue until the debt is fully paid. However, these are often less burdensome than the penalties for not making any payments at all.