Form 13844 – IRS Fee Waiver and $43 Reduced Installment Setup

You set up an IRS payment plan, breathe for the first time in weeks, then you see a setup fee that stings. If your household income is on the lower side, you do not have to just accept it. You can ask the IRS to cut that fee to $43, or even waive it if you pay by automatic bank draft. That request runs through one short document, IRS Form 13844, and there is a firm 30‑day clock after your approval letter, so timing matters.

Key Takeaways

• Form 13844 lets qualifying low‑income individuals reduce the IRS installment agreement setup fee to $43, and with a Direct Debit Installment Agreement, the fee can be waived.
• Low‑income status for this purpose means your AGI is at or below 250% of the HHS poverty guidelines for your family size and location. Use the table on the current form to check.
• Mail your signed form within 30 days of the date on your installment agreement acceptance letter. Late submissions are not considered.
• As of November 3, 2025, the form lists this mailing address, IRS ACS Correspondence, P.O. Box 24017, Stop 76101, Fresno, CA 93779. Always use the address shown on the version you download.
• Current setup fees, without low‑income relief, depend on how you apply and how you pay, for example $22 online with direct debit, $69 online without direct debit, $107 by phone or mail with direct debit, $178 by phone or mail without direct debit. Low‑income rules can waive or reduce these fees.

What is IRS Form 13844

Form 13844 is the Application for Reduced User Fee for Installment Agreements. If the IRS did not automatically flag your account as low income when your payment plan was approved, this is how you ask for the reduced $43 fee or a full waiver when you pay by direct debit. You certify your family size and AGI from your most recent return, sign under penalty of perjury, and mail it within 30 days of your acceptance letter.

Who should use it

Use Form 13844 if you are an individual taxpayer, not a business, who just had an installment agreement approved and you believe your AGI and family size meet the 250% poverty guideline test. The IRS often identifies eligible taxpayers on its own, however that does not always happen. This form is your safety net to get the lower fee you qualify for.

A quick way to check if it fits you

• Grab your latest Form 1040, then look at Line 11 for AGI. Count your family unit size, you, spouse, and dependents, exactly as on that return. Match those numbers to the low‑income table printed on the current Form 13844. If your AGI is at or below the amount for your state group and family size, you qualify.
• If you can use a Direct Debit Installment Agreement, the setup fee can be waived for low‑income filers. If you cannot use direct debit and you still qualify, the IRS can reimburse the reduced fee after you finish the plan.

How Form 13844 differs from the payment plan request

Do not mix up the tools. You establish the payment plan with the Online Payment Agreement or Form 9465. You use Form 13844 only after the plan is approved, and only to reduce or waive the setup fee based on your income and payment method. Think of it as a follow‑up step that controls cost, not the plan terms.

A simple sequence to follow

• Apply for a payment plan, usually online.
• Receive the IRS acceptance letter.
• If the letter does not show low‑income fee treatment and you qualify, complete Form 13844 and mail it within 30 days to the address on the current form. Keep tracking and copies.

The 2025 update you should know

The IRS revised Form 13844 in February 2025. The current form includes up‑to‑date income thresholds based on the 2025 HHS poverty guidelines and lists the Fresno mailing address. If you see older posts that point to a different P.O. Box, rely on the address printed on the version you download today.

If your acceptance letter landed this week, you are on a clock. Aim to send Form 13844 within two weeks so delivery and processing happen well inside the 30‑day window.

Eligibility, explained without tax‑speak

You qualify as a low‑income taxpayer for Form 13844 if your AGI from your most recent filed return is at or below 250% of the poverty guideline for your family size and where you live. You do not have to hunt down a separate chart. The table is printed on the current Form 13844.

2025 examples to ground it

These are examples from the 2025 table on the form. They already reflect the 250% calculation.

• Family of 1, 48 states and DC qualifies at $39,125 or less.
• Family of 3, 48 states and DC qualifies at $66,625 or less.
• Family of 4, 48 states and DC qualifies at $80,375 or less.
• Family of 2, Alaska qualifies at $66,075 or less.
• Family of 2, Hawaii qualifies at $60,800 or less.

HHS issued the 2025 poverty guidelines on January 16, 2025. The IRS form uses those values to set the 250% thresholds for this fee relief. (hhs.gov)

Family size, the detail that decides everything

Count yourself, your spouse, and all dependents exactly as reported on your last filed return. Overstating the number can be treated as a false claim. Understating it can push you over the threshold when you actually qualify. Your signature certifies both AGI and family size under penalty of perjury, so take a minute to get it right.

Fees today, so you can plan

The IRS updated installment agreement user fees on July 1, 2024. Your base setup fee depends on whether you apply online and whether you use direct debit. Low‑income relief through Form 13844 can lower your costs further, and direct debit can trigger a full waiver for qualifying households.

Current setup fees at a glance

How you pay each month	Apply online	Apply by phone, mail, or in person
Direct Debit Installment Agreement	$22	$107
Non‑direct debit, for example check, money order, or card	$69	$178

Notes you should not miss:

• If you are low income and you use direct debit, the IRS can waive the setup fee.
• If you are low income and cannot use direct debit, the IRS can reimburse the reduced fee after you complete the plan.
• If you revise or reinstate online, the fee is $10.

Where to mail Form 13844 in 2025

Mail your signed Form 13844 within 30 days of the date on your acceptance letter to the address printed on the current form. As of November 3, 2025, that is IRS ACS Correspondence, P.O. Box 24017, Stop 76101, Fresno, CA 93779. Keep a copy and tracking.

Why you may see different addresses online

Older posts still show a Kansas City address. The IRS controls address changes through official form revisions. Use the address on the form you download today, not an older article.

Timing, step by step

• Day 0, the acceptance letter date, your 30‑day clock starts.
• Days 1 to 7, check AGI and family size against the table on the form.
• Days 7 to 10, sign and mail with tracking to the address on the form.
• Keep your filings and payments current while you wait.

Miss the 30‑day window and the IRS will not consider the application. Put a bright sticky note on your letter with a mail‑by date one week early, then follow it.

How Form 13844 works with your payment plan

Form 13844 does not create or change your payment plan. It only affects the fee to set it up. You request the plan through the Online Payment Agreement or Form 9465, then you use Form 13844 after approval to adjust the fee based on your income and payment method.

Which plan choice pairs best with the fee relief

If you can handle automatic bank withdrawals, choose a Direct Debit Installment Agreement. It lowers the base setup fee and, for low‑income taxpayers, allows the IRS to waive the fee entirely. If you cannot use direct debit, you can still qualify for the reduced amount and a reimbursement after you complete the plan.

Fill out Form 13844 with confidence

• Identification. Enter your name, SSN or ITIN, spouse details if joint, and your address.
• Family unit size. Count yourself, spouse, and dependents exactly as on your last filed return.
• AGI. Use Form 1040 Line 11 from the most recent year available.
• Direct debit ability. Check the box only if you cannot use direct debit. Leaving it unchecked indicates you can.
• Sign and date. Both spouses sign for joint liabilities. Mail within 30 days of the acceptance letter date.

A real‑world example

You live in Texas, family unit size is 4, AGI from Line 11 is $78,400. The 2025 table shows the 250% threshold for a family of 4 in the 48‑state group is $80,375. You qualify as low income. If you set up direct debit, the IRS can waive the fee. If you cannot use direct debit, your fee is reduced to $43, and the IRS can reimburse it after you complete the plan.

Download the right form, every time

Always download the current PDF directly from IRS.gov. The file shows “Form 13844 (Rev. 2‑2025)” at the top and includes the Fresno mailing address and 2025 income thresholds. Save it, confirm it opens, and double‑check page 1 before you print and sign.

Why the Online Payment Agreement still matters

Even if you plan to file Form 13844, consider requesting or revising your installment plan online. The online pathway carries lower base fees, gives you instant confirmation, and plan changes like reinstatements can be done online for $10.

Common mistakes that slow everything down

• Mailing to an old address you found in a forum. Use the address on the current form.
• Waiting for another IRS notice and missing the 30‑day window that starts on your acceptance letter date.
• Counting family size differently than your filed return.
• Forgetting one signature on a joint liability.

Quick win, place the acceptance letter, completed form, and a stamped envelope in one folder. Mail it with tracking the same week.

The costs you can actually control

You cannot stop interest and penalties from accruing while you pay over time. You can control the setup fee by choosing the right application path and payment method, then using Form 13844 if you qualify as low income. That combination keeps more cash in your pocket during a tight stretch.

Side‑by‑side fee view with low‑income relief in mind

Scenario	Base setup fee	If you qualify as low income
Apply online, direct debit	$22	Fee can be waived
Apply online, non‑direct debit	$69	$43 and may be reimbursed after completion
Apply by phone, mail, or in person, direct debit	$107	Consider switching to online if possible
Apply by phone, mail, or in person, non‑direct debit	$178	$43 and may be reimbursed after completion

After you apply, what to expect

The IRS reviews your signed Form 13844, matches family size and AGI, and decides whether you qualify. If approved and you use direct debit, the setup fee can be waived. If you qualify but do not use direct debit, the reduced fee applies and can be reimbursed after you complete the agreement. Keep your plan current, file returns on time, and pay new balances when due.

If you already paid a higher setup fee

Approval can lead to a reimbursement when the rules allow it, generally after you meet all terms of the agreement. Keep your IRS Online Account notices in one folder so you can confirm the credit posts correctly.

How to revise your plan when life shifts

If you need a lower payment, a different due date, or you want to switch to direct debit to qualify for a waiver, use the Online Payment Agreement tool first. Online changes are simpler and the reinstatement or restructure fee is $10. Call only if you cannot resolve it online.

A short checklist you can trust

• Log into your IRS Online Payment Agreement.
• If eligible, switch to direct debit and enter routing and account numbers.
• If you were not flagged as low income, mail Form 13844 promptly.
• Save all confirmations and track your debits monthly.

For accounting firms, a process tip

If you run a tax practice, build a simple SOP that triggers a Form 13844 check for any client whose plan is approved. Track the 30‑day deadline, verify family size against the signed return, and log AGI from Line 11. At Accountably, our delivery teams standardize workpapers, templates, and review steps so firms stop missing quick wins like low‑income fee waivers or reimbursements, while partners spend less time in review. Keep whatever system you have, just make it consistent and visible.

Why it matters to your client experience

Clients remember two things, whether you solved the problem and whether you saved them money without drama. A consistent 13844 process does both and protects margins by cutting down on rework during peak months.

Step‑by‑step, all in one place

1.Confirm eligibility

• Pull Form 1040, find Line 11 AGI.
• Count family unit size exactly as filed.
• Compare to the thresholds on the current Form 13844.

2. Choose a payment method

• If possible, choose a Direct Debit Installment Agreement to unlock a potential full waiver under low‑income rules.
• If you cannot, you may still get the reduced $43 amount and reimbursement after completion.

3. Complete and mail

• Fill in identification, family size, AGI, and check the box only if you cannot use direct debit.
• Sign, both spouses if joint.
• Mail within 30 days of the acceptance letter to the address on the current form, as of today that is Fresno. Keep tracking.

FAQs

What does Form 13844 actually do in one sentence? 

It lets qualifying low‑income individuals reduce the IRS installment agreement setup fee to $43, and if they pay by direct debit, the fee can be waived. It does not create or change your payment plan.

Where do I mail Form 13844 right now?

Use the mailing address printed on the version you download today. As of November 3, 2025, the form lists IRS ACS Correspondence, P.O. Box 24017, Stop 76101, Fresno, CA 93779.

How fast do I need to send it? 

Within 30 days of the date on your installment agreement acceptance letter. Aim to mail it within two weeks.

What are today’s setup fees without low‑income relief? 

When you apply online, the fee is $22 with direct debit or $69 if you pay manually. By phone, mail, or in person, it is $107 with direct debit or $178 without direct debit. Low‑income rules can waive or reduce these amounts.

Does Form 13844 apply to businesses? 

No. Low‑income fee relief applies only to individuals, not corporations or partnerships.

If the IRS already charged a higher setup fee, can I get money back?

If you qualify as low income and you could not use direct debit, you may receive a reimbursement of the reduced fee after you complete the plan. If you qualify and use direct debit, the fee can be waived up front.

Final checkpoints before you hit print

• You used AGI from the most recent filed return, not an estimate.
• You counted family size exactly as filed.
• You confirmed the Fresno mailing address on the current Form 13844.
• You added tracking and saved a copy.

You are not asking for a favor. The reduced or waived fee is built into IRS policy for qualifying households. Use the form, meet the timeline, and keep your plan current.