When you can’t pay your taxes all at once, a payment plan can stop enforcement and give you breathing room. Here’s what to know.
What Is an IRS Payment Plan
An IRS Installment Agreement lets you pay what you owe over time, preventing most enforcement actions while you stay compliant.
It’s the most common solution for taxpayers who can’t pay in full immediately.
Types of Installment Agreements
- Guaranteed Agreement – For debts of $10,000 or less; automatic approval if you meet conditions.
- Streamlined Agreement – For balances up to $50,000; typically up to 72 months.
- Partial Payment Agreement – Allows smaller monthly payments, with some balance possibly expiring after the collection statute limit.
How to Apply
You can apply online through IRS.gov or with professional help.
Approval requires that all tax returns are filed and estimated payments are current.
What Happens if You Miss a Payment
Missing payments can default your agreement, trigger new penalties, and restart collections.
If your finances worsen, you might instead qualify for an Offer in Compromise or Currently Not Collectible status.
When a Payment Plan Isn’t Enough
If interest and penalties are snowballing or your balance is too large, another relief program may save you more money.
A qualified tax relief firm can compare your options and communicate with the IRS on your behalf.
Need help setting up an affordable IRS payment plan?
Talk to Tax Relief Systems LLC for a free consultation at (877) 807-3133 or info@taxreliefsystemsllc.com
Article written by Richard Lococo.
