IRS Installment Agreements

If you owe tax debt to the IRS, there are several alternatives to paying it all in one lump sum. The IRS offers four different installment agreements that allow you to pay off your tax debt over time. However, penalties and interest up to 10% per year will apply.

Guaranteed Installment Agreement

For taxpayers who have consistently filed and paid their taxes and owe less than $10,000 (excluding interest and penalties). This agreement helps avoid federal tax liens and sets up a payment plan to clear your debt within three years.

Streamlined Installment Agreement

For taxpayers owing less than $50,000, including penalties and interest. There is a setup fee, but this plan allows you to avoid federal tax liens and aims to make you debt-free within seven years.

Partial Payment Installment Agreement

For taxpayers who owe more than $10,000 and cannot repay their entire tax liability. This plan allows you to settle your tax debt for less than the full amount through a monthly payment plan. It requires extensive paperwork detailing your tax debts and financial situation.

Non-Streamlined Installment Agreement

For taxpayers who owe more than $50,000. This plan involves negotiating directly with the IRS to establish a payment plan. You will need to file paperwork that outlines your tax debt, income, debts, assets, and other financial information.

Explore these options to find the best solution for your personal tax situation.

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