Installment Agreement
Pay Your IRS Debt on a Schedule You Can Manage
An IRS Installment Agreement allows taxpayers to pay their tax debt in manageable monthly installments rather than in one lump sum. When structured correctly, an installment agreement stops wage garnishments, releases bank levies, prevents new liens, and puts you on a clear path to resolving your IRS debt. Our attorneys negotiate the terms to get you the lowest possible monthly payment while keeping you compliant.
What Is an IRS Installment Agreement?
An IRS Installment Agreement is a formal payment plan arrangement that allows you to pay your tax debt over time. There are several types: Guaranteed Installment Agreements (for debts under $10,000), Streamlined Installment Agreements (for debts under $50,000 — minimal financial documentation required), and Partial Payment Installment Agreements (where your monthly payment may not fully pay off the debt before the collection statute expires). For larger debts, the IRS requires full financial disclosure before approving terms. All installment agreements require that you stay current on future tax obligations — missing a payment or filing obligation can default the agreement and trigger aggressive collection action.
How It Works
Assess Your Situation
We review your total IRS balance, filing history, and financial situation to determine the best type of installment agreement for you.
Prepare Financial Documentation
For larger balances, we prepare and submit the required financial statements (Forms 433-A or 433-F) to support your requested payment amount.
Negotiate Terms
We negotiate with the IRS to secure the lowest monthly payment possible based on your allowable living expenses and disposable income.
Agreement Established
Once approved, you begin making monthly payments. Collection actions stop and the IRS cannot levy your wages or bank accounts while you remain in compliance.
Ongoing Compliance Support
We monitor your agreement, help you stay compliant with future filings and payments, and renegotiate terms if your financial situation changes.
Who Should Consider This?
- ✓You owe back taxes to the IRS and cannot pay in full immediately
- ✓All required tax returns are filed or will be filed before setup
- ✓You have steady income to support a monthly payment
- ✓You are not currently in an open bankruptcy proceeding
- ✓Balances under $50,000 qualify for streamlined processing with minimal documentation
- ✓Larger balances require full financial disclosure but can still qualify
Key Benefits
Stops Collections Immediately
An approved installment agreement prevents the IRS from levying your wages, bank accounts, or property.
Reduces Penalties
Some penalties are reduced or suspended once a formal payment agreement is in place.
Flexible Terms
Payment amounts are based on your actual ability to pay — the IRS must consider your necessary living expenses.
Can Be Modified
If your financial situation changes, installment agreements can be renegotiated or temporarily suspended.
Ready to Resolve Your Installment Agreement Issue?
Free consultation. No obligation. A licensed tax attorney will call you within 5 minutes.
Frequently Asked Questions
Will interest continue to accrue on my installment agreement?+
Yes — interest and some penalties continue to accrue on the unpaid balance. However, the failure-to-pay penalty rate is reduced by 50% once an installment agreement is in place.
What happens if I miss a payment?+
Missing a payment can default your agreement and trigger immediate collection action including levies and garnishments. Contact us immediately if you cannot make a scheduled payment — we can often prevent default.
How long can an installment agreement last?+
Streamlined agreements can run up to 72 months. For larger debts, the agreement term is typically limited to the remaining collection statute period (usually 10 years from assessment).
Can I get an installment agreement if I have unfiled returns?+
You must file all required returns before the IRS will approve a payment agreement. We can help you get current on your filings as part of the setup process.
Related Services
Offer in Compromise
A government-approved program that lets qualifying taxpayers settle their IRS debt for a fraction of the full amount.
Partial Payment Installment Agreement
A Partial Payment Installment Agreement lets you make affordable monthly payments that may never fully pay off your debt — and when the 10-year collection statute expires, the rest is gone.
Wage Garnishments
IRS wage garnishment can take the majority of your take-home pay. We act fast to release garnishments and establish a permanent resolution that protects your income.