IRS Payment Plans (Installment Agreements).

Types of IRS payment plans

• Short-term payment plan: extra time, up to 180 days, to pay in full. There is no setup fee, but penalties and interest continue until the balance is paid.
• Long-term payment plan (installment agreement): monthly payments, usually by direct debit or payroll deduction. Setup fees depend on how you apply and pay, and can be reduced or waived for low-income taxpayers.
• Larger balances, or situations where the IRS needs financial information, may require a collection information statement (Form 433-F or 433-A) and negotiation of the payment amount.

The IRS online payment agreement tool can be used when your balance is within its online limits and your returns are filed. The current limits and fees are on the IRS pages linked below.

What happens to penalties and interest

Interest and the failure-to-pay penalty keep running until the balance is paid. For individuals who filed on time, the failure-to-pay penalty rate is reduced while an installment agreement is in effect. Paying more than the minimum shortens the plan and lowers the total interest.

Staying in good standing

• Make every payment on time.
• File all future returns on time and pay new taxes in full, or adjust withholding or estimated payments so you do not owe again.
• Future refunds are generally applied to the balance.
• Missing payments or owing new tax can put the plan in default, and collection can resume.

How we help

We confirm the balance from your IRS transcripts, file any missing returns, work out a payment you can actually keep up with, and set up or negotiate the plan. If a payment plan is not realistic for your budget, we look at other options such as currently-not-collectible status or an offer in compromise.

Documents to gather

• IRS notices showing the balance
• Proof of income (pay stubs, profit-and-loss statements)
• Monthly expense records
• Bank statements, if the IRS asks for financial information

Please don’t send Social Security numbers, bank details or tax documents through the website chat or forms. We’ll arrange a secure way to share them.

How fees work

We quote a flat fee after the free consultation, once we know what the work involves, and agree the scope with you before any work starts. Amounts owed to the agency, and any agency fees, are paid to the agency, not to us. No one can promise a particular result: the agency decides, and our job is to present your case accurately and on time.

Frequently asked questions

Official sources

• IRS: Payment plans and installment agreements
• IRS: Apply online for a payment plan
• IRS Tax Topic 202, Tax payment options
• IRS Publication 594, The IRS Collection Process

Last updated November 13, 2026 · General information, not tax or legal advice. Read the disclaimer.