I set up an IRS installment plan to pay off taxes. Is there a penalty if I don’t adhere to my payment plan and pay off debt early?

There’s no penalty for paying off your IRS payment plan early. In fact, if you pay tax debt quickly, it’s likely the installment plan fee will be waived.

You can avoid the fee by paying the full amount within 120 days. Apply online to specify this option to pay taxes. If you owe more than $50,000, call the IRS at 800-829-1040 to discuss your tax debt options.

If you can’t pay taxes in full amount within 120 days, you’ll have to pay one of these fees for setting up the agreement:

• $52 for a direct debit agreement
• $120 for a standard agreement or payroll deduction agreement
• $43 if your income is below a certain level

Fill out Form 13844 to apply for the reduced user fee.