IRS payment plans that you can actually keep

The main options

• Short-term payment plan. More time to pay in full, generally up to 180 days.
• Installment agreement. Monthly payments over a longer period. Lower balances can often qualify for a streamlined agreement with little financial disclosure. Larger balances usually require a full financial statement.
• Something other than a plan. If the numbers show you cannot afford any meaningful payment, other options such as currently-not-collectible status or an offer in compromise may fit better.

What a plan does and does not do

A payment plan generally stops most enforced collection while you stay current, and it gives you a clear end date. It does not stop interest, which continues to accrue on the unpaid balance. You must keep filing and paying on time going forward, because a missed return or payment can default the agreement.

Where people go wrong

• Agreeing to a payment on the phone that is higher than they can sustain.
• Leaving unfiled returns outstanding. The IRS will not grant a plan until you are filing.
• Not checking whether penalty relief could reduce the balance first.

How we help

We review what the IRS says you owe, check for penalties that can be removed, work out a payment you can sustain, and set up the agreement with the IRS for you. You do not spend hours on hold.

Related

• Offer in compromise
• Unfiled tax returns
• Levies and wage garnishments
• IRS tax liens
• Penalty relief
• Audit and appeals
• Payroll tax problems