One of the payment options allowed by the IRS for Individuals with a balance due of less than $50,000 in combined tax, penalties, and interest that have filed up to date tax returns is a long-term payment plan. With a long-term plan, taxpayers may pay in monthly payments for up to the collection statute, usually 10 years.

Unlike short-term payment plans, long-term payment plans have a setup fee with the IRS. If you set up a direct debit (automatic bank withdrawal) plan, the setup fee is $22 (or $0 for low income taxpayers). If you set up a nondirect debit (not automated) plan, the setup fee is $69 (or $43 for low income taxpayers). The monthly payments can be made to the IRS directly from your checking or savings account using Direct Pay (no fees), or by check, money order or debit/credit card (for an additional fee).

Here’s how to apply with the IRS for a long-term payment plan:

1. Login to your account (or create an account) on the IRS website.
2. Hover over the Payments tab and select Payment Options.
   
3. Click the blue Create a payment plan button.
   
4. Enter your balance owed on the Plan Eligibility page.
   
5. Select the desired payment option for your Long-Term Plan, then click the blue Apply for a long-term plan button.
   
   
6. Once the IRS finishes reviewing your pending request, you should receive additional correspondence about your plan. Payments will be able to be completed through your IRS account in the Payments section of your account.