---
title: Short Term vs Long Term IRS Payment Plan: Which One Fits?
url: https://taxtruce.com/compare/short-term-vs-long-term-payment-plan
updated: 2026-10-29
---

# Short term vs long term IRS payment plan

Updated October 8, 2026[Fact checked](/editorial-standards)

Short term plan*vs*Long term plan

**Time to pay**

Up to 180 daysMonthly payments over time

**Setup fee**

$0$29 to $178

**Apply online if you owe**

Less than $100,000$50,000 or less, all returns filed

The short answer

Short plans are free but end in 180 days. Long plans cost a fee but run monthly.

## Short term plan vs Long term plan at a glance

|  | Short term plan | Long term plan |
| --- | --- | --- |
| **Time to pay** | Up to 180 days | Monthly payments over time |
| **Setup fee** | $0 | $29 to $178 |
| **Apply online if you owe** | Less than $100,000 | $50,000 or less, all returns filed |
| **Who can apply online** | Individuals only | Individuals. Businesses call. |
| **Interest and penalties** | Keep adding up | Keep adding up. Late pay penalty drops to 0.25% if filed on time. |

## What to know

A short plan costs nothing to set up, so it fits if you can pay soon.

A long plan with direct debit has the lowest long plan fee, $29 online.

Low income filers can get the long plan fee waived with direct debit.

**Short term plan may fit if**

* You can pay in full within 180 days
* You want no setup fee

**Long term plan may fit if**

* You need more than 6 months
* You want automatic payments
* You may want the $25,000 lien withdrawal path

Results depend on your situation. Not every case qualifies.

## Sources

1. [IRS: Payment plans and installment agreements](https://www.irs.gov/payments/payment-plans-installment-agreements)
2. [IRS: Failure to pay penalty](https://www.irs.gov/payments/failure-to-pay-penalty)

Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.