An IRS installment agreement is a payment plan that lets you pay your tax debt over time in monthly payments. Most people who owe $50,000 or less can get a streamlined plan of up to 72 months without a full financial disclosure. Larger balances require negotiation. Tax Flow Resolution sets up and negotiates the plan so the payment fits your real budget.
To get and keep a payment plan, you generally need to:
Setup fees depend on how you apply and whether you pay by direct debit. Low-income taxpayers may qualify for reduced or waived fees. Direct debit plans usually cost the least and are the least likely to default.
As a Revenue Agent, Israel saw how payment plans are evaluated from the government's side. The IRS does not simply ask what you can afford. It measures your expenses against national and local standards. We document your real, allowable expenses so the payment reflects your actual situation, not a number you cannot sustain.
A payment plan is only a solution if you can keep it. Many people accept the first payment the IRS suggests, fall behind a few months later, and end up in default with levies back on the table. For balances above the streamlined threshold, the IRS calculates your payment from your income and IRS-allowable expenses under its Collection Financial Standards. The way your expenses are documented can change the required payment significantly.
In some cases, bringing the balance under $50,000 (for example, with a lump-sum payment) qualifies you for a streamlined plan and avoids a full financial disclosure. In others, a partial-pay agreement, Currently Not Collectible status or an Offer in Compromise is the better route. We compare the options before choosing one.
Missing payments, failing to file a future return or incurring a new balance can put an installment agreement into default. The IRS sends a notice before terminating a plan, and you usually have a chance to fix the problem or appeal through the Collection Appeals Program. If you receive a default notice, contact us right away. It is much easier to reinstate an agreement than to start over after enforced collection resumes.
Israel spent 17 years inside the IRS: a decade as a Revenue Agent conducting examinations and seven years as an Appeals Officer resolving disputes. He is an Enrolled Agent, federally licensed to represent taxpayers before the IRS. He personally handles every case, and also supports CPAs and tax firms on IRS exams and appeals.
This page is for general information and is not legal or tax advice for your specific situation. IRS rules, thresholds and fees change. Results depend on the facts of each case. Contact us for advice about your situation.
There is no minimum. Individuals who owe $50,000 or less in combined tax, penalties and interest can usually get a streamlined plan of up to 72 months. Balances over $50,000 can still go on a payment plan, but the IRS requires financial information and sets the payment based on your ability to pay.
Yes. Interest and the failure-to-pay penalty continue until the balance is paid in full. If you filed your return on time, the failure-to-pay penalty rate is cut in half, to 0.25% per month, while an installment agreement is in effect.
Generally no. The IRS may not levy while an installment agreement request is pending, while an agreement is in effect, for 30 days after a rejection or termination, or while a timely appeal is under consideration.
Not automatically. A lien stays until the balance is paid, but in some cases a lien can be withdrawn after you convert to a direct debit installment agreement. We can review whether you qualify.
Yes. There is no prepayment penalty. Paying early reduces the interest and penalties you owe.
If paying would leave you unable to cover basic living expenses, you may qualify for Currently Not Collectible status or an Offer in Compromise instead. We will review every option during your free consultation.
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