The IRS charges a user fee to set up an Installment Agreement for a taxpayer.  The IRS used to charge a user fee of $43.00 to set up the account for the Installment Agreement.  However, several years ago, this fee was increased to $105.00.  Unfortunately, as of January 1, 2017, the fee increased to $225.  However, if the taxpayer agrees to a direct debit agreement the fee is reduced to $107.  For tax payers who meet certain low income criteria, the fee is only $43.  This user fee is not charged until after the proposed agreement is accepted.  If the monthly payment is greater than the fee, the IRS will simply deduct the fee from the first payment.  If the monthly payment is less than the user fee, then the taxpayer must pay the set-up fee with the first payment.