Form 13844: Application For Reduced User Fee for Installment Agreements (2025)
When you owe taxes to the IRS and can't pay the full amount immediately, setting up a monthly payment plan (called an installment agreement) seems like a straightforward solution. However, the IRS charges setup fees for these payment plans—fees that can range from $22 to $178 depending on how you apply and how you pay. For taxpayers already struggling financially, these fees add insult to injury. That's where Form 13844 comes in: it's your ticket to reducing or completely eliminating these setup fees if you qualify as a low-income taxpayer.
What Form 13844 Is For
Form 13844, officially titled ""Application For Reduced User Fee for Installment Agreements,"" serves one specific purpose: to help low-income taxpayers get relief from the fees the IRS charges for setting up a payment plan. Normally, when you arrange to pay your tax debt in monthly installments, the IRS charges a user fee to process your application. These fees can be substantial—ranging from $69 to $178 for standard long-term payment plans, or as low as $22 if you set up automatic direct debit payments from your bank account.
If you qualify as low-income based on your household size and adjusted gross income, Form 13844 allows you to reduce that fee to just $43. Even better, if you're low-income and you agree to make automatic electronic payments through a Direct Debit Installment Agreement (DDIA), the IRS will waive the entire fee. If you're unable to make electronic payments, the $43 fee will be reimbursed to you once you've successfully completed your payment plan. IRS.gov
The form applies only to individual taxpayers—corporations and partnerships aren't eligible for reduced fees. The IRS defines low-income taxpayers as those with adjusted gross incomes at or below 250% of the federal poverty guidelines, which are updated annually by the U.S. Department of Health and Human Services.
When You’d Use Form 13844 (Timing Matters)
You would use Form 13844 after you've already applied for and been approved for an installment agreement with the IRS. This isn't a form you submit when initially requesting a payment plan—you handle that with Form 9465 (Installment Agreement Request) or through the IRS's Online Payment Agreement tool. Once the IRS approves your payment plan and sends you an acceptance letter, you have a narrow window to act.
Critical deadline: You must submit Form 13844 within 30 days from the date on your installment agreement acceptance letter. Miss that deadline, and the IRS will not consider your application for low-income status. This 30-day window is firm—the IRS explicitly states they will not process late applications. IRS.gov
You would typically use this form if:
- The IRS didn't automatically identify you as low-income when you set up your payment plan
- You paid the standard setup fee but believe you qualify for the reduced fee or waiver
- Your financial situation places you at or below 250% of federal poverty guidelines based on your household size
- You've already been charged the higher fee and want to claim a refund or reimbursement
The form cannot be used retroactively beyond the 30-day window, and it doesn't apply to amended installment agreements unless you're establishing a new agreement that requires a new application.
Key Rules for 2025
Income Thresholds (2025): The low-income cutoffs are based on 2025 federal poverty guidelines. For a single person living in the contiguous 48 states or DC, the threshold is $39,125. For a family of four, it's $80,375. These amounts are higher for Alaska and Hawaii residents. For each additional family member beyond eight, add $13,750 (or $17,200 for Alaska, $15,825 for Hawaii). IRS.gov
Family Unit Size: Your family unit includes yourself, your spouse (if filing jointly), and all dependents claimed on your most recent tax return. Use the adjusted gross income (AGI) from your most recent return—that's line 11 on Forms 1040 and 1040-SR.
Direct Debit Advantage: If you qualify as low-income and set up automatic monthly payments from your checking account (Direct Debit Installment Agreement), the entire user fee is waived—reduced from as much as $107 to $0. Without direct debit, the fee drops to $43, but you'll only get that money back after you've finished paying off your entire tax debt.
The 30-Day Rule: Form 13844 must be mailed to the IRS within 30 days of the date on your installment agreement acceptance letter. The mailing address is: IRS ACS Correspondence, P.O. Box 24017, Stop 76101, Fresno, CA 93779.
Certification Under Penalty of Perjury: When you sign Form 13844, you're certifying under penalty of perjury that your income and family size information is accurate. Falsifying this information can result in serious legal consequences.
Step-by-Step (High Level)
Step 1: Determine Your Eligibility
Pull out your most recent tax return (Form 1040 or 1040-SR) and note two key pieces of information: your adjusted gross income (line 11) and the number of dependents you claimed (including yourself and your spouse). Count your total family unit size.
Step 2: Compare Your Income to the Guidelines
The form includes a table showing income thresholds by family size and geographic location. Find the row for your family size and the column for your state (48 contiguous states/DC, Alaska, or Hawaii). If your AGI is equal to or less than the amount in that box, you qualify as low-income.
Step 3: Indicate Your Payment Method
The form asks whether you're unable to make electronic payments through direct debit. If you're physically able but choosing not to use direct debit, leave that box unchecked—this means you'll pay the $43 reduced fee but won't get it back until your payment plan is completed. If you check the box indicating you cannot use direct debit, you'll be reimbursed the $43 once you finish paying.
Step 4: Fill in Personal Information
Provide your name, Social Security Number (SSN), and if it's a joint liability, your spouse's name and SSN as well.
Step 5: Sign and Date
Both you and your spouse (if applicable for joint liability) must sign the certification statement. This confirms under penalty of perjury that you qualify for low-income status based on the information provided.
Step 6: Mail It Promptly
Mail the completed form to the Fresno address within 30 days of your installment agreement acceptance letter date. Keep a copy for your records and consider sending it via certified mail for proof of timely filing.
Common Mistakes and How to Avoid Them
Missing the 30-Day Deadline: This is the most costly mistake. Many taxpayers set aside the acceptance letter and forget about Form 13844 until it's too late. Solution: As soon as you receive your installment agreement acceptance letter, mark your calendar for 20 days later as a reminder. Don't wait until day 29.
Using the Wrong Income Figure: Some taxpayers mistakenly use their taxable income or their total income instead of their adjusted gross income (AGI). The form specifically requires AGI from line 11 of your Form 1040/1040-SR. Solution: Have your actual tax return in hand when completing the form.
Miscounting Family Size: Only count dependents you actually claimed on your most recent tax return. Don't include grown children who no longer qualify as dependents, even if they live with you. Solution: Look at the dependents section of your return to get an accurate count.
Checking the ""Unable to Pay Electronically"" Box When You Just Prefer Not To: If you're physically capable of setting up direct debit but simply prefer paying by check, don't check this box. Doing so could be considered fraudulent certification. Solution: Be honest about your circumstances. If you want the full fee waiver, set up direct debit.
Sending the Form to the Wrong Address: Don't send Form 13844 to the address where you normally file your tax return or where you send your monthly payments. It has its own specific mailing address in Fresno. Solution: Double-check the address on the form itself.
Forgetting to Sign: An unsigned form won't be processed. Both spouses must sign if it's a joint liability. Solution: Review the entire form before sealing the envelope.
What Happens After You File
Initial Processing: The IRS will review your form to verify that you submitted it within the 30-day window and that your income and family size calculations are accurate. They'll compare your information against the federal poverty guidelines.
Approval Scenarios:
If you qualify and you're on a Direct Debit Installment Agreement, the IRS will waive your setup fee entirely. If you've already paid it, you'll receive a refund relatively quickly—usually within 2-3 months.
If you qualify but aren't on direct debit, your account will be flagged for reimbursement of all but $43 of what you paid. However, you won't receive this reimbursement until you've completed your entire payment plan—meaning you've paid off your full tax debt. This could take months or even years depending on your payment amount and total debt.
If You're Denied: If the IRS determines you don't qualify as low-income based on your AGI and family size, they'll send you a letter explaining the denial. You'll remain responsible for the full user fee you originally paid. There's no formal appeals process specifically for Form 13844 denials, but you can contact the IRS if you believe there was an error in their calculation.
Your Payment Plan Continues: Regardless of whether your Form 13844 application is approved or denied, your installment agreement remains in effect. Continue making your monthly payments on time. The reduced fee determination doesn't affect your underlying payment obligations or terms.
Keep Making Payments: Remember that interest and penalties continue to accrue on your unpaid balance until it's paid in full, so staying current with your monthly payments is crucial to avoiding default.
FAQs
What if the IRS already recognized me as low-income when I set up my payment plan?
You don't need Form 13844. The IRS's system automatically applies reduced fees for taxpayers it identifies as low-income during the initial application process.
Can I submit Form 13844 electronically or must it be mailed?
As of 2025, Form 13844 must be mailed to the Fresno address listed on the form. There is no electronic submission option.
What if my 30th day falls on a weekend or federal holiday?
Apply the general tax deadline rules—if the 30th day falls on a weekend or federal holiday, your deadline extends to the next business day. However, don't cut it that close.
If I get divorced or my income changes after submitting Form 13844, do I need to notify the IRS?
Changes after submission won't affect your Form 13844 determination, which is based on your circumstances at the time you applied. However, significant financial changes could allow you to modify your payment plan terms.
Does Form 13844 apply to state tax installment agreements?
No. Form 13844 applies only to federal tax installment agreements with the IRS. States have their own payment plan programs and fee structures.
Can I use Form 13844 if I'm revising or reinstating an existing installment agreement?
Yes, but only if you're being charged a new user fee for the revision or reinstatement and you submit Form 13844 within 30 days of that new acceptance letter.
What happens if I default on my payment plan after receiving a fee waiver or reimbursement?
If you default on your installment agreement, you'll need to apply for reinstatement, which carries its own fees. Your previous fee waiver or reimbursement isn't affected, but you may face new fees for the reinstatement.
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