Can't Pay Your Tax Bill in Full?
Get a Payment Plan You Can Afford.

IRS Installment Agreements let you spread your tax debt over months or years. Here's how we negotiate the lowest monthly payment possible.

Get Your Payment Plan

What Is an IRS Installment Agreement?

An Installment Agreement (IA) is a formal payment plan with the IRS that lets you pay your tax debt over time — typically 6 to 72 months.

What Happens When You Get a Payment Plan:

  • Collection activity stops immediately (no levies, garnishments, or seizures)
  • Tax liens may remain (but can be withdrawn under certain conditions)
  • Interest and penalties continue (but at reduced rates)
  • You make predictable monthly payments until the debt is paid
  • You stay in control — no surprises, no enforcement

💡 "A payment plan isn't surrender — it's strategy."

Once you have an approved installment agreement, the IRS leaves you alone. No threatening letters. No wage garnishments. No bank levies. You're in control.

Types of IRS Payment Plans

1. Guaranteed Installment Agreement

For tax debts under $10,000

Qualification: You must: (1) owe less than $10,000, (2) have filed all required returns, (3) agree to pay within 3 years, (4) not have had an IA in the past 5 years.

Approval: Automatic — the IRS must accept it if you meet the criteria.

Setup fee: $0-$31 (depending on payment method)

2. Streamlined Installment Agreement

For tax debts under $50,000

Qualification: You must: (1) owe $50,000 or less (can be combined tax + penalties + interest), (2) agree to pay within 72 months (6 years), (3) have filed all required returns.

Approval: No financial statement required (Form 433-F optional) — the IRS doesn't scrutinize your income/expenses.

Setup fee: $31-$130 (waived for low-income taxpayers)

3. Partial Payment Installment Agreement (PPIA)

For high debts you can't fully repay

How it works: You pay what you can afford monthly, even if it won't pay off the full debt before the 10-year collection statute expires. The IRS writes off the remaining balance when the statute expires.

Qualification: Must prove you can't pay in full and can't qualify for Offer in Compromise. Requires detailed financial disclosure (Form 433-A or 433-F).

Benefit: The IRS reviews your financial situation every 2 years — payments may be adjusted down if your situation worsens.

4. Non-Streamlined (Full Financial) Installment Agreement

For tax debts over $50,000

Requirement: Complete financial disclosure (Form 433-A for individuals, 433-B for businesses). The IRS reviews your income, expenses, assets, and determines what you can afford to pay monthly.

Negotiation: This is where professional representation matters most. We negotiate to maximize allowable expenses and minimize monthly payments.

Payment term: Typically 72 months, but can extend longer in some cases.

How We Negotiate Your Payment Plan

1

Analyze Your Financial Situation

We review your income, expenses, assets, and debt to determine: (1) which type of IA you qualify for, (2) the minimum monthly payment the IRS will accept, and (3) the maximum payment term available. Goal: lowest payment, longest term.

2

Maximize Allowable Expenses

The IRS uses "allowable living expense" standards (housing, transportation, food, etc.). We maximize every allowable category to reduce your disposable income and lower your required monthly payment. Examples: claiming higher transportation costs if you drive for work, including medical expenses, accounting for child care, etc.

3

Submit Installment Agreement Request

We submit Form 9465 (Installment Agreement Request) or apply online through IRS.gov. For streamlined IAs (under $50K), approval is fast (2-4 weeks). For non-streamlined IAs (over $50K), we include complete financial documentation and negotiate with the IRS directly.

4

IA Approved — Collections Stop

Once approved, collection enforcement stops immediately (levies released, garnishments stopped). You make predictable monthly payments (automatic withdrawal recommended for fee reduction and lien withdrawal eligibility). Stay current on future filings and payments or the IA defaults.

Real Result: $156K Debt, $850/Month Payment

The Problem:

  • Real estate investor, $156,000 combined tax debt (2018-2022)
  • Rental properties cash-flowing but no liquidity
  • IRS demanding $2,200/month payment (would force property sales)
  • Client needed to preserve rental portfolio for retirement income

Our Strategy:

  • Prepared detailed Form 433-A showing rental income, mortgage payments, and property expenses
  • Argued for higher allowable living expenses (client supported elderly parent)
  • Proposed Partial Payment IA: $850/month for remainder of 10-year statute
  • Demonstrated full repayment impossible within statute without liquidating assets

The Result:

  • Partial Payment IA approved: $850/month
  • 6 years remaining on statute = ~$61K total paid
  • ~$95K debt written off when statute expires
  • Client kept all rental properties
  • Retirement income preserved

Timeline: 7 weeks from IA application to approval

Payment Plan Questions Answered

How much will my monthly payment be?

It depends. For streamlined IAs (under $50K), you propose the monthly amount — just divide your debt by 72 months (e.g., $36K ÷ 72 = $500/month). For non-streamlined IAs (over $50K), the IRS calculates your disposable income (monthly income minus allowable living expenses) and that becomes your minimum payment. We negotiate to minimize this amount by maximizing allowable expenses.

Does interest continue while I'm on a payment plan?

Yes. Interest and late-payment penalties continue to accrue while you're on an installment agreement (currently ~8% annually for interest + 0.5% per month for late-payment penalty). However, the failure-to-pay penalty is reduced from 0.5% to 0.25% per month once you're on an approved IA. This is still expensive, but it's better than the alternative (levies, liens, wage garnishment).

Can I pay off my payment plan early?

Absolutely. There's no prepayment penalty. If you come into money (bonus, inheritance, tax refund, etc.), you can make lump-sum payments to reduce principal and save on future interest. You can also increase your monthly payment amount at any time. Pro tip: Apply tax refunds from future years toward your IA balance to accelerate payoff.

What happens if I miss a payment?

Your IA defaults. The IRS sends a notice giving you 30 days to get current. If you don't, the agreement is terminated and collection enforcement resumes (levies, garnishments, etc.). To avoid default: (1) Use automatic withdrawals (Direct Debit IA) so you never miss a payment, (2) Contact us immediately if you can't make a payment — we can request a temporary suspension or modification.

Will a payment plan remove a tax lien?

Not automatically. The lien remains in place until the debt is paid in full. However, you may qualify for lien withdrawal if you: (1) enter into a Direct Debit Installment Agreement (automatic monthly withdrawals), (2) make 3 consecutive on-time payments, (3) owe less than $25K, and (4) meet other IRS criteria. Lien withdrawal removes the lien from public record retroactively — this helps restore your credit.

Can I modify my payment plan if my financial situation changes?

Yes. If you lose your job, experience a medical emergency, or have another financial hardship, you can request an IA modification. The IRS may: (1) lower your monthly payment, (2) temporarily suspend payments, or (3) convert to Currently Not Collectible status if the hardship is severe. We handle IA modifications regularly — life happens, and the IRS has mechanisms to adjust.

Get a Payment Plan
You Can Actually Afford

Let's negotiate the lowest monthly payment and longest term possible. Stop the collection enforcement and get back in control.

Schedule Your Payment Plan Consultation

📞 Or call: 248-985-8100

Strategic Planning Advisors, LLC

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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