Owe the IRS? How Payment Plans Work and What They Really Cost
Farmington – October 19, 2026 -- Taxpayers who can't pay their IRS bill in full can choose between a short-term plan of up to 180 days with no setup fee and a long-term installment agreement of generally up to 72 months. A recent HelloNation article draws on insights from Thomas Stamper, a Tax Resolution Expert with Alpha Omega Accounting PC in Farmington, New Mexico.
A short-term plan gives you up to 180 days at no setup cost
The simplest option is the short-term payment plan. According to the article, it works well when a shortfall is temporary, such as when a bonus, a home sale, or seasonal income could cover the balance within six months.
Installment agreements stretch payments to as long as 72 months
When six months is not enough, the long-term option is an installment agreement. Most people who owe $50,000 or less in combined tax, penalties, and interest can apply online, provided all required returns are filed.