<prompt> Human: I owe about 3,000 to the IRS. Im self employed so I use a 1099 and last year I got behind on my quarterly estimated payments. If I can get a lower interest rate through the bank rather than the IRS should I take out a small loan?  <response>: Here are the costs associated with an IRS Installment Agreement IA, assuming you need more than four months to pay the balance due:User Fee: A one-time fee is charged to establish the agreement. Depending on the terms and conditions, the fee ranges from 0 to 225.00.Failure To Pay penalty FTP: The FTP is generally 0.5 of the unpaid tax, charged per month or part of a month. Most Taxpayers qualify for a reduced FTP rate of 0.25 when an Installment Agreement is established.Interest: The IRS interest rate is currently 5 per year, compounded daily on the unpaid tax and penalties. The rate can be increased or decreased on a quarterly basis.IA payments are applied to any user fee first, then the underlying tax liability. Once the tax is zero, payments are applied to the penalties, and then the interest.With a 3,000 balance due, you should expect a minimum monthly payment of 45.00. 