FixIRSTax.com | Tax Resolution Division
✓ IRS Payment Plan (Installment Agreement)
Can't pay your tax debt in full? We negotiate payment plans that fit your budget — and stop collections immediately.
📋 The Problem: You Owe the IRS (and Can't Pay in Full)
If you owe the IRS more than you can afford to pay immediately, ignoring the debt leads to:
- ❌ Liens on your property and credit
- ❌ Levies on your bank accounts and wages
- ❌ Interest and penalties compounding every month (~8% annually + 0.5% penalty)
- ❌ Stress — wondering when the IRS will strike
The IRS offers Installment Agreements (IAs) — official payment plans that let you pay your debt over time (typically 6 to 72 months) and stop collections immediately.
✅ What Is an IRS Installment Agreement (Payment Plan)?
An Installment Agreement (IA) is a formal payment plan with the IRS that lets you pay your tax debt in monthly installments instead of a lump sum.
✓ When Your IA Is Approved:
- ✅ Collections stop — no new levies or garnishments
- ✅ You make fixed monthly payments (automatic withdrawal recommended)
- ✅ Liens may remain until paid off (but can be withdrawn under certain conditions)
- ⚠️ Interest and penalties continue to accrue — but late-payment penalties reduce from 0.5% to 0.25% per month
💡 Frank-ism:
"The IRS would rather get paid over time than not at all. If you set up a legit payment plan, you buy yourself breathing room — and we make sure you're paying the minimum the IRS will accept, not a penny more."
📊 4 Types of IRS Installment Agreements
Not all payment plans are the same. The IRS offers 4 types — and we determine which one minimizes your monthly payment and maximizes approval odds.
Guaranteed IA
Best for: Small tax debts
- ✓ Debt < $10,000
- ✓ Must file all returns
- ✓ Agree to pay within 3 years
- ✓ No IA in last 5 years
Approval: Automatic if criteria met
Setup Fee: $0–$31
Streamlined IA
Best for: Most taxpayers
- ✓ Debt ≤ $50,000 (tax + penalties + interest)
- ✓ Pay within 72 months
- ✓ No Form 433-F (financial statement) required
- ✓ Fast approval
Monthly Payment: Total debt ÷ 72
Setup Fee: $31–$130 (waived for low income)
Partial Payment IA (PPIA)
Best for: High debts you can't fully repay
- ✓ You pay what you can afford
- ✓ Remaining balance written off when statute expires (10-year collection window)
- ⚠️ Qualification: Cannot pay in full
- ⚠️ Form 433-A or 433-F required
Example: $100K debt; pay $400/mo for 6 years (statute expires); ~$71K forgiven
Non-Streamlined IA
Best for: Large debts > $50K
- ✓ Debt > $50,000
- ✓ Full financial disclosure (Form 433-A or 433-B)
- ✓ IRS negotiates payment
- ✓ Typical term: 72 months (sometimes longer)
Monthly Payment: Based on disposable income
Setup Fee: $31–$225
💼 Lori-ism:
"We've seen clients qualify for Partial Payment IAs when they thought they had to pay the full amount. Sometimes the numbers work in your favor — but only if you present them correctly."
🛠️ How We Set Up Your IRS Payment Plan
Analyze Your Finances
We review:
- ✓ Total IRS debt (tax + penalties + interest)
- ✓ Income, expenses, assets
- ✓ Years left on the 10-year collection statute
Goal: Determine which IA type minimizes your monthly payment and whether a Partial Payment IA is possible.
Maximize Allowable Living Expenses
For Non-Streamlined IAs and PPIAs, the IRS calculates your payment based on disposable income (income minus allowable expenses).
We maximize your allowable expenses using IRS National and Local Standards:
- ✓ Food, clothing, housekeeping
- ✓ Housing and utilities
- ✓ Transportation (car payment, insurance, gas, maintenance)
- ✓ Out-of-pocket health expenses
- ✓ Court-ordered payments (child support, etc.)
Result: Lower disposable income = lower monthly payment
Submit IA Request
We prepare and submit:
- ✓ Form 9465 (Installment Agreement Request) — or apply online for Streamlined IAs
- ✓ Form 433-A or 433-F (Collection Information Statement) for Non-Streamlined IAs and PPIAs
- ✓ Supporting documents (pay stubs, bank statements, expense receipts)
Timeline: IRS response typically 30–45 days (faster for Streamlined IAs)
Approval & Collections Stop
Once approved:
- ✅ Collections stop immediately
- ✅ You make fixed monthly payments (automatic withdrawal via Direct Debit recommended)
- ✅ We monitor compliance and handle IRS communications
⚠️ Important: Miss a payment → IA defaults → collections resume. We set up automatic payments to prevent this.
⚖️ Frank-ism:
"Direct Debit IAs qualify for lien withdrawal once you've made 3 payments and meet other conditions. That means cleaner credit and easier refinancing. It's a no-brainer."
📈 Real Result: $156K Debt → $850/Month Payment Plan
🏗️ The Problem
Client: Construction contractor, SE Michigan
IRS Debt: $156,000 (payroll taxes + penalties)
Cash Flow: Inconsistent; couldn't afford lump-sum settlement
🔍 Our Discovery
- ✓ 6 years left on the 10-year collection statute
- ✓ Client qualified for Partial Payment IA (PPIA)
- ✓ Maximized allowable expenses (housing, vehicle, health insurance, child support)
✅ The Resolution
- ✅ $850/month payment plan (Non-Streamlined IA)
- ✅ Over 6 years (statute expiration): Client pays ~$61,000
- ✅ Remaining ~$95,000 written off when statute expires
- ✅ Bank levy released
- ✅ Lien remains but no new enforcement
🔒 The Prevention
- ✓ Enrolled in Annual Service Plan (ASP) to prevent future payroll tax issues
- ✓ Set up BriteBooks360 CFO services for cash flow planning and estimated tax reserves
💬 Client: "I thought I'd be paying this forever. Frank showed me how to use the statute of limitations to my advantage."
❓ Frequently Asked Questions
It depends on which IA type you qualify for:
- Streamlined IA (debt ≤ $50K): Total debt ÷ 72 months
Example: $30,000 ÷ 72 = $417/month - Non-Streamlined IA (debt > $50K): Based on disposable income (income minus allowable expenses)
We maximize your allowable expenses to reduce the payment - Partial Payment IA: Same as Non-Streamlined, but remaining balance is forgiven when the 10-year statute expires
📞 Bottom line: We calculate the lowest monthly payment the IRS will accept.
Yes — but at reduced rates:
- ✓ Interest: Continues to accrue (~8% annually) — cannot be waived
- ✓ Late-payment penalty: Reduced from 0.5% to 0.25% per month once IA is approved
⚠️ Important: The sooner you set up a payment plan, the less interest and penalties accumulate.
Frank-ism: "Every month you wait costs you money. Get the plan in place."
Yes — and we recommend it if you can.
- ✅ No prepayment penalty
- ✅ Reduces total interest paid
- ✅ Lien released faster
Strategy: Make extra payments when cash flow allows (e.g., after a big contract or tax refund).
Your IA defaults — and collections resume:
- ❌ Levies and garnishments restart
- ❌ Setup fee forfeited
- ❌ Must reapply (and IRS may demand higher payments)
✅ Prevention: We set up automatic Direct Debit from your bank account — no missed payments, no risk of default.
Not automatically — but lien withdrawal is possible under certain conditions:
- ✓ You set up a Direct Debit IA
- ✓ You make 3 consecutive on-time payments
- ✓ Your debt is ≤ $25,000 (or you pay it down to that level)
- ✓ You meet all tax filing and payment requirements
Result: Lien removed from public record → cleaner credit, easier refinancing.
Lori-ism: "Lien withdrawal is one of the best-kept IRS secrets. Not many practitioners know how to get it done — we do."
Yes — you can request a modification if:
- ✓ Your income decreases (job loss, business downturn)
- ✓ Your expenses increase (medical bills, child support)
Process: Submit updated Form 433-A and supporting docs; IRS reviews and adjusts payment.
⚠️ Important: You must request modification before you miss a payment — otherwise, your IA defaults.
Timeline: Typically 30–60 days for IRS review
- Streamlined IA (debt ≤ $50K): 2–4 weeks
- Non-Streamlined IA (debt > $50K): 4–8 weeks
- Partial Payment IA: 6–10 weeks (more scrutiny from IRS)
📞 While we negotiate: We can often get a temporary hold on collections (levy releases, garnishment stops) within days.
Yes — for simple Streamlined IAs (debt ≤ $50K), you can apply online at IRS.gov.
⚠️ But:
- ❌ You'll likely pay more than necessary (the IRS won't volunteer ways to reduce your payment)
- ❌ For debts > $50K, you need Form 433-A — and how you present your finances determines your payment
- ❌ Mistakes = denial or higher payments
✅ We handle it: We maximize allowable expenses, minimize monthly payments, and handle all IRS communications.
Frank-ism: "The IRS isn't your advocate. We are."
You may qualify for:
- ✓ Currently Not Collectible (CNC) status: IRS suspends collections until your finances improve
- ✓ Offer in Compromise (OIC): Settle for less than you owe (if you qualify)
📞 We analyze all options in your free Discovery Call and recommend the best path forward.
📞 Ready to Set Up a Payment Plan That Works?
We negotiate IRS payment plans that fit your budget and stop collections immediately.
CPA + EA Team | 25+ Years | Nationwide Service
💬 20-minute call with Frank or Lori. No pressure. Just clarity.
FixIRSTax.com | Tax Resolution Division
Disclaimer:
FixIRSTax | A Division of Strategic Planning Advisors LLC provides IRS resolution services. Information provided on this site is for educational purposes only and does not constitute formal tax, legal, or investment advice. Please consult your advisor before making financial decisions.
Information provided on this site is for educational purposes only and does not constitute formal tax, legal, or investment advice. Please consult your advisor before making financial decisions.
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