Yes, there is an application fee for an Installment Agreement.  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.  Unlike the application fee for the Offer In Compromise which will be charged when you submit the Offer, this fee is not charged until after you submit your request for the Installment Agreement and it is accepted.  If your monthly payment is greater than $105, the IRS will simply deduct the fee from your first payment.  If your fee is less than $105, then you must pay the set-up fee with your first payment.  If the taxpayer’s income meets certain low-income levels, the fee may be reduced or even eliminated.  This is determined on a case-by-case basis.