Taxpayers who are unable to pay taxes before the tax day deadline and can’t pay the entire amount at once can use the IRS Payment Plan to meet their tax obligations. The taxpayers, wondering about the plan, can check the full details here.
What is the IRS Payment Plan 2026?
The IRS payment plan is an installment agreement that allows users to pay the taxes in installments over an extended timeframe. This allows taxpayers to meet their tax liability while not feeling burdened by paying all the taxes in one time, if you can’t pay all in one time.
Taxpayers who believe they can pay the taxes in the installment in the extended time, should go for the payment plan, depending on which type of plan suits their situation. The payment plan is for people who are not eligible for Currently not Collectible status or debt forgiveness.
However, you should know one thing: this payment plan only helps you pay all tax balance in a certain interval in installments; it does not reduce your taxes, hence it will not eliminate your interest or penalties. So, until your tax debt is paid off, the interest and penalties will continue to add to your payment.
What are the types of IRS Payment Plans?
If you are going for the IRS Payment plan, you should know the types of payment plans it offers to choose the one that suits your situation, such as:
- Short-term plan: You will be paying the taxes in 180 days or less, if you owe $100,000 or less in the tax balance, interest, penalties, and the filed returns.
- Long-term Plan: If you owe a tax balance of $50,000 or less, you can go for the long-term plan and pay the amount each month in installments. If you have business and pay business tax, you can go for the long-term plan when you owe $25,000 or less in combined taxes.
What is the minimum monthly payment under the IRS Payment Plan?
When you are applying for the IRS long-term payment plan, you must know the minimum monthly payment to pay it every month to avoid making penalties. The minimum payment plan under the long-term plan can vary for taxpayers depending on their tax debt.
The minimum monthly payment is calculated when you divide your total debt by six years (72 months). So, in the 2026 tax season, if you wish to calculate your minimum monthly payment under the long-term payment plan, you can calculate it accordingly.
However, remember, you can change the amount depending on your financial situation with the proper proof of your financial conditions. So, prepare your financial proof better; otherwise, the IRS will use this method to calculate your minimum monthly payment.
What are the fees and costs of the IRS Payment plan?
If you are planning to apply for the IRS Payment plan, you must know that the payment plan have their cost and fees, such as:
| IRS Payment Plan | Payment Options | Fees & costs |
| Long-Term Plan | Direct Debit payment | $22 setup fee (online)Apply by phone, In-person, or mail:$107 |
| Monthly payment/Electronic payment/ by check/money order/ debit/ credit card | Online application: $69 set up feePhone, Mail, in-person: $178 Low-income applicants: $43 | |
| Short-term Plans | Direct payment Electronic payment through the IRS Account/ cheque/ money/ debit/ credit card | $0 set up fee |
However, if you wish to change the existing payment plan, you may have to pay the $10 fee for online application or $89 if applying through mail, phone, or in-person.
How can you manage your IRS payment plan to avoid any issues?
You should manage your IRS payment plan to avoid any trouble, and you could do that when you understand your account and keep the following things in your mind:
- Always pay the monthly due payment on time.
- File the tax return on time and pay the taxes as per your payment plan.
- Schedule payments properly to avoid missing any payments, and your refunds can be used to recover your tax debt.
- If you change your residence, update the address to the IRS through Form 8822 or through your online IRS account.
- When you make the payment through a check, remember to add your name, SSN, address, phone number, return type, tax year, and payment.
How to apply for the IRS Payment Plan 2026?
You can apply for the IRS Payment Plan 2026 online if you are a qualified taxpayer or have the power of attorney. The IRS online payment agreement application will let you set up your plan in no time, in the following steps:
- First, you should have an IRS online account; if you don’t have one, create one and also gather your bank account and routing numbers.
- Now, go to the IRs Online payment agreement application and click on the Apply as individuals.
- Now, sign in with your ID.me and verify your identity on the portal.
- Once you have verified your identity, complete the application for the payment plan.
The IRS payment plan allows you to pay your taxes in installments and complete your tax responsibility if you can’t pay the full amount in a single payment. So, choose the payment plan wisely and meet your tax liability.