IRS Form 13844 – IRS Forms, Instructions, Pubs 2026 – If you’re facing tax debt and need a payment plan, IRS installment agreements can help spread out your payments. However, setup fees can add up. That’s where IRS Form 13844 comes in – it allows qualifying low-income taxpayers to apply for a reduced user fee. This article explains everything you need to know about Form 13844, including eligibility, how to apply, and recent updates based on 2025 guidelines. Whether you’re searching for “reduced fee IRS installment agreement” or “how to qualify for low-income IRS payment plan,” we’ve got you covered with the latest information from official IRS sources.
What Is IRS Form 13844?
IRS Form 13844, titled “Application for Reduced User Fee for Installment Agreements,” is designed for individuals who qualify as low-income taxpayers. It helps reduce the standard user fee for setting up an installment agreement (IA) to just $43. This reduced fee can even be waived or reimbursed under specific conditions, making it easier for those with limited income to manage their tax obligations.
Installment agreements allow you to pay your tax debt in monthly installments rather than a lump sum. Normally, fees range from $52 for direct debit setups to $105 for non-direct debit, but low-income status drops it to $43. This form does not apply to corporations or partnerships – it’s strictly for individual taxpayers.
The form was last revised in February 2025, incorporating updated poverty guidelines from the U.S. Department of Health and Human Services (HHS). You can download the PDF directly from the IRS website: https://www.irs.gov/pub/irs-pdf/f13844.pdf.
Who Qualifies for the Reduced User Fee?
Eligibility for Form 13844 is based on your adjusted gross income (AGI) and family size. To qualify as a low-income taxpayer for installment agreement purposes:
- Your AGI must be at or below 250% of the federal poverty guidelines for your location and family unit size.
- Family unit size includes you, your spouse, and any dependents claimed on your most recent tax return.
- AGI is pulled from Line 11 of your latest Form 1040 or 1040-SR.
The IRS uses automated systems to check eligibility initially, but if you’re not flagged as low-income and believe you qualify, submit Form 13844 for reconsideration. Note that you must submit it within 30 days of receiving your installment agreement acceptance letter.
Income Thresholds for 2025 Guidelines
The thresholds vary by location (48 contiguous states/D.C./U.S. territories, Alaska, or Hawaii) and family size. Here’s a breakdown:
| Family Size | 48 Contiguous States, D.C., U.S. Territories | Alaska | Hawaii |
|---|---|---|---|
| 1 | $39,125 | $48,875 | $44,975 |
| 2 | $52,875 | $66,075 | $60,800 |
| 3 | $66,625 | $83,275 | $76,625 |
| 4 | $80,375 | $100,475 | $92,450 |
| 5 | $94,125 | $117,675 | $108,275 |
| 6 | $107,875 | $134,875 | $124,100 |
| 7 | $121,625 | $152,075 | $139,925 |
| 8 | $135,375 | $169,275 | $155,750 |
For each additional family member beyond 8, add:
- $13,750 (48 contiguous states/D.C./U.S. territories)
- $17,200 (Alaska)
- $15,825 (Hawaii)
If your AGI exceeds these amounts, you won’t qualify. Always use the most recent year’s AGI data available to the IRS.
How to Fill Out IRS Form 13844?
Completing Form 13844 is straightforward. Follow these steps:
- Indicate Payment Method Preference: Check the box if you’re unable to make electronic payments via a direct debit installment agreement (DDIA). If you don’t check it, it means you’re able but choosing not to – this affects whether the fee is reimbursed upon completion.
- Enter Family Unit Size: Include the total number of dependents (you, spouse, and others) from your most recent tax return.
- Provide Adjusted Gross Income: Input your AGI from Line 11 of Form 1040/1040-SR.
- Compare to Guidelines: Use the table on the form (or the one above) to verify eligibility based on your residence and family size.
- Certify and Sign: If you qualify, sign under penalty of perjury, including your name, SSN/TIN, and spouse’s details if applicable.
The form requires basic personal information like your name and Social Security Number (SSN) or Taxpayer Identification Number (TIN).
How to Apply and Submit Form 13844?
First, apply for an installment agreement using Form 9465 or the IRS Online Payment Agreement tool. Once approved, if you’re not automatically granted low-income status:
- Mail the completed Form 13844 to: IRS ACS Correspondence, P.O. Box 24017, Stop 76101, Fresno, CA 93779.
- Submit within 30 days of your IA acceptance letter.
For faster processing, consider setting up a DDIA – if approved as low-income, the fee is waived entirely. If you can’t use DDIA, the $43 fee is reimbursed after completing the agreement.
Benefits of Using Form 13844
- Cost Savings: Reduce your setup fee to $43, with potential waiver or reimbursement.
- Accessibility: Helps low-income individuals avoid additional financial strain while resolving tax debt.
- Automated Consideration: The IRS often checks eligibility automatically, but this form ensures reconsideration.
Penalties and interest still accrue on unpaid balances, so aim to pay off your debt as quickly as possible.
Recent Changes and Updates
As of the February 2025 revision, the form incorporates the latest HHS poverty guidelines released on January 17, 2025. The IRS continues to automate user fee calculations, reducing paperwork for many applicants. Always check the IRS website for any 2026 updates, as guidelines are updated annually.
If you receive an LT27 notice or similar, and believe you qualify, use this form to request reconsideration.
For more details, visit the IRS payments page or consult a tax professional. This guide is based on current IRS publications to help you navigate “IRS reduced user fee application” efficiently.