It depends on the amount of tax owed, how you set up the plan, and how you make the payments.
The most affordable option is the 180 day plan. If you apply online, by phone, by mail, or in person, the setup fee is $0. You still have to pay the accrued penalties and interest until the balance is paid in full.
The failure to pay penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won’t exceed 25% of your unpaid taxes.
The interest on your balance due is compounded daily based on the previous day's balance. The interest rate is 8% for the first and second quarter of 2023. Follow this link for more about payment plans.
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