IRS Long Term Payment Plan: Cost, Limits and Setup
If you can't pay the IRS within 180 days, a licensed tax pro sets up your monthly plan today.
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We answer your call, review your balance for free, and start your plan today.
Who qualifies for an IRS long term payment plan
This plan fits you if you can't pay within 180 days but can pay something each month. The IRS says more than 90% of individuals qualify for a Simple Payment Plan. You need every required return filed, and an open bankruptcy case rules it out.
Say you owe $22,000 and pay $468 a month for 60 months. You pay about $28,080 in all. A licensed tax pro checks that number with you before you commit.
How much can you owe on a long-term plan
Online, you can owe up to $50,000 in tax, penalties and interest combined. The plan must clear the balance before the IRS deadline to collect, generally 10 years, per Topic 202.
Owe $10,000 or less in tax, pay it off within 3 years, and keep a clean 5-year record to get approved automatically. The IRS manual has dropped the old 72-month rule, so an IRS payment plan 72 months long is no longer the standard.
What does a long-term plan cost to set up
The cheapest setup is $29, applied online with automatic withdrawals. Applying by phone or mail and paying by hand each month costs $178, per the IRS payment plan page.
Low income means at or below 250% of the federal poverty level. Interest and the 0.25% monthly penalty keep adding to the total, as shown on our interest rate page. A tax pro picks the setup that costs you the least.
| How you pay | Online | Phone, mail or in person | Low income |
|---|---|---|---|
| Automatic withdrawal | $29 | $107 | Waived |
| You pay each month | $69 | $178 | $43, may be paid back |
How do you apply for a long-term plan
Sign in to your IRS Online Account and open the online payment agreement. Choose a monthly amount and a payment day from the 1st to the 28th. The answer shows on screen.
If you owe more than $50,000, you file Form 9465 with Form 433-F instead. A licensed tax pro fills these out with you and checks every line before you send them.
Frequently asked questions
How long is an IRS long term payment plan?
It runs as long as it takes to clear the balance before the IRS collection deadline. That deadline is usually 10 years after the tax was assessed. Most people pick a much shorter plan.
Can I pay off my IRS long term payment plan early?
Yes. You can pay any extra amount through Direct Pay or your online account. There is no fee for paying early, and you save on interest.
What happens if you owe the IRS more than $25,000?
Online, nothing changes up to $50,000. By mail, owing $25,000 to $50,000 means agreeing to direct debit or payroll deduction, or sending a financial form. A tax pro tells you which route fits your case.
What is the longest payment plan you can do with the IRS?
The longest plan runs up to the collection deadline, generally 10 years from assessment. If you can't clear the balance by then, a tax pro can check you for a partial payment plan.
What to do now: lock in your monthly plan
Each month without a plan adds interest at 7% a year plus a late payment penalty. After a notice of intent to levy, the penalty rises to 1% a month if you don't pay within 10 days. Call now and a licensed tax pro sets up your plan today.