IRS Form 13844 (2025): User Fee for Installment Agreements

What IRS Form 13844 (2025) Is For

IRS Form 13844 (2025) allows low-income taxpayers to request a reduced user fee for installment agreements when setting up payment plans with the Internal Revenue Service. The form applies only to individual taxpayers who need assistance in reducing the user fee for installment plans, including those using a direct debit installment agreement. It ensures that payment plans remain accessible and affordable, helping eligible filers meet their tax obligations through monthly payments without being burdened by higher user fees.

To explore your IRS payment plan options and see which agreement may fit your situation, visit our comprehensive guide to payment plans.

When You’d Use IRS Form 13844 (2025)

You would use IRS Form 13844 (2025) in situations where your payment plan was approved, but your reduced user fee was not applied automatically.

• Receipt of the installment agreement acceptance letter: Taxpayers would use the form when the Internal Revenue Service has approved their installment agreement, and they need to request the reduced fee within the allowed 30-day period.
  
  
• Low-income qualifier: You should file the form if your income meets the federal poverty guidelines, but the reduced user fee was not automatically applied.
  
  
• The setup fee was not reduced: You should submit the form when the IRS does not identify your low-income taxpayer status, and you will be charged the standard user fee.
  
  
• Monthly installment payment options: In this case, you should file the form when the standard fee makes it difficult to manage your monthly payments on your tax debt.
  
  
• Payment plan online not recognized: If the online payment plan system did not adjust your user fee, even though you meet the criteria, please send the form.

If your payment plan includes IRS penalties, you may also qualify for penalty abatement for IRS fees.

Key Rules or Details for 2025

Several vital rules determine whether IRS Form 13844 (2025) can reduce the user fee for an installment agreement.

• Income thresholds based on health and human services poverty guidelines: Eligibility is based on whether your adjusted gross income is at or below 250 percent of the poverty guidelines for your family size and location.
  
  
• Use of adjusted gross income from your recent income tax return: The IRS requires that you use the adjusted gross income listed on line 11 of your most recent Form 1040 to determine whether you qualify.
  
  
• Eligibility is limited to individual taxpayers: Only individual filers may request a reduced user fee, as corporations and partnerships are not eligible for this relief.
  
  
• Direct debit requirement for full setup fee waiver: The full waiver applies only when you agree to electronic payments from a checking account or savings account through a direct debit arrangement.
  
  
• Submission within the 30-day limit shown on the acceptance letter: The IRS requires that you mail the form within 30 days of the date on the installment agreement acceptance letter for it to be processed.

Step-by-Step (High Level)

1. Confirm eligibility based on your adjusted gross income and family size: You should compare your adjusted gross income and household size to the poverty guidelines shown on the form to determine whether you qualify.
   
   
2. Review your existing IRS installment agreement details: Confirm the type of installment plan you have and review your payment amount and monthly installments to understand your current terms.
   
   
3. Select whether you can use direct debit or are unable to make electronic payments: You must indicate whether you can authorize electronic debit payments or whether you are unable to make electronic payments due to valid limitations.
   
   
4. Provide your identifying information and the account number for direct debit. Please enter accurate personal details and the correct checking account or savings account information if you are choosing automatic payments.
   
   
5. Sign and mail the completed form to the correct IRS address: You must sign the form and mail it to the IRS address listed on the instructions to ensure timely processing of your reduced user fee request.

For those also struggling with state taxes, explore our state tax relief solutions for broader assistance.

Common Mistakes and How to Avoid Them

Many taxpayers face delays or denials due to errors that can be prevented through careful review and attention to detail.

• Missing the 30-day mailing deadline: You can avoid this issue by sending the form immediately after receiving your installment agreement acceptance letter, ensuring the IRS gets it on time.
  
  
• Using the wrong adjusted gross income figure: You can prevent this mistake by confirming that you are using the adjusted gross income from line 11 of your most recent income tax return rather than another income amount.
  
  
• Incorrectly claiming you are unable to make electronic payments: You can avoid problems by checking this box only when you truly cannot authorize electronic debit payments from your checking account or savings account.
  
  
• Sending the form with missing signatures: You can prevent processing delays by ensuring that all required signatures are included, especially when joint filers share the tax debt.

Use our IRS Account Transcript Service to confirm your adjusted gross income and keep track of your installment agreement status.

What Happens After You File

Once IRS Form 13844 (2025) is received, the IRS reviews your eligibility based on your income, household size, and the information in your installment agreement. The IRS verifies whether your installment plan qualifies for a reduced user fee or whether a direct debit agreement will result in the setup fee being waived. You should continue making monthly payments while the IRS processes your request, since penalties and interest continue to accrue until your tax bill is fully paid. 

FAQs

Can I use IRS Form 13844 if I already have a guaranteed installment agreement or a streamlined installment agreement in place?

Yes, IRS Form 13844 can be used with a guaranteed installment agreement or a streamlined installment agreement when you meet the income rules and are still charged the standard setup fee. You must mail the form after receiving approval of your plan to request the fee reduction.

Does IRS Form 13844 apply if I only have a short-term payment plan for unpaid federal taxes?

No, a short-term payment plan does not charge a setup fee, so low-income taxpayers do not need IRS Form 13844 for this type of arrangement. The form applies only to installment plans that require fees.

Can the reduced user fee apply if I pay by money order instead of automatic payments?

Yes, you may still qualify for the reduced fee; however, the complete setup fee waiver only applies when you use automatic payments from a checking or savings account. If you use a money order or another method, the reduced fee of $43 applies once your plan is complete.

What if I have not filed other tax forms or older tax returns yet?

The Internal Revenue Service requires that all required tax returns be filed before it can process IRS Form 13844. If you still need to file other tax forms or past tax returns, they must be submitted first to avoid delaying your reduced user fee request. You must resolve unfiled tax returns before the IRS can process your reduced user fee request.