Installment agreement, or IRS payment plan, overview
If you owe the IRS and cannot pay the entire balance due, you may be able to set up a monthly payment plan with the IRS.
Taxpayers can set up IRS payment plans when they owe taxes on a tax return of when they receive and IRS notice about tax, penalties and interest owed. Different installment agreement options exist depending upon how much you owe the IRS. We can help you determine which agreement is best for you, and prepare a request for an installment agreement
Installment agreement options
Guaranteed installment agreement
If you owe $10,000 or less and can pay the balance of taxes owed within three years or by the collection statute expiration date (CSED).
Streamlined installment agreement
If you owe $50,000 or less and can pay within six years or by the CSED, whichever is sooner. If you owe more than $25,000 then payments must be made through direct debit or a payroll deduction.
Non-streamlined installment agreement
If you owe more than $50,000, or cannot pay the balance within six years or by the CSED, whichever is sooner. These agreements are more complicated to set up and are based on your ability to pay.
Our 3-step installment agreement process
First, we will contact the IRS to request your account transcripts to determine total balance due and make sure all required tax returns have been filed. If all returns have not been filed, we will prepare and file them.
Next, we will review all information and recommend an installment agreement option.
Lastly, we will determine the lowest amount possible you may pay and submit a request for an installment agreement to the IRS. We will answer any remaining questions from the IRS and will appeal if the IRS denies your installment agreement.