Common Types of IRS Installment Agreements

IRS Payment Plan

When your tax debt is more than you can pay at once, setting up a payment plan with the IRS is the most common way to resolve it. The IRS offers several established payment plans with different criteria on how to qualify for them. But even if you don’t meet the qualifications, there is almost always a way to work out a payment agreement with the IRS—especially with the experts at the Highland Tax Group working on your behalf.

Common Types of Payment Plans

The IRS currently provides several types of payment plans for both individuals and businesses.

  • Streamlined Installment Agreement. People who owe $50,000 or less typically qualify for a streamlined installment plan, which allows the taxpayer to make minimum monthly payments on the taxes owed for up to six years. The IRS may charge a small setup fee to implement the plan, and the taxpayer can use online tools to adjust the monthly payment periodically.
  • Installment Agreements for Tax Debts over $50,000. When your tax debt exceeds $50,000, you may still be able to qualify for an installment agreement—but you will be required to furnish financial statements to the IRS, and they will review your situation thoroughly to see if you qualify.
  • Partial Payment Installment Agreement. If you can’t meet the minimum payments for the installment agreements above, the IRS may allow you to make lower payments on a portion of your tax debt. The IRS will review your financial situation every couple of years to determine your eligibility. This arrangement is more difficult to qualify for, and it may involve a tax lien and/or liquidation of some assets, so it’s best to work with a tax resolution professional who can help negotiate the best terms for you.


Other Payment Plan Options

Even if you don’t meet the qualifications for the types of payment plans above, we can still work with you and the IRS to find an arrangement that works for your needs. The IRS taxing authorities have thresholds of liability that you must meet in order to qualify for certain types of agreements. The IRS also requires financial information to structure certain plans if the tax liability does not meet the threshold requirement. It’s also important to note that unless specifically negotiated otherwise, the IRS will continue to assess penalties and interest on your unpaid tax balance until it is paid, even with an agreement in place.

We can negotiate various types of payment arrangements not specifically mentioned by the IRS, including increasing payments over time, balloon payments, and other options. If you show a willingness to pay, there is generally a way to make it happen.

With the help of Highland Tax Group, we assure you there will be an IRS payment plan to fit your needs and your budget. To learn more, reach out via the contact form below.