“If you’re not able to pay the entire amount you owe in back taxes, the IRS will work with delinquent taxpayers to set up payment plans – also called installment agreements – designed to give you flexibility to pay a smaller, more manageable amount every month.”
- Alyssa Maloof Whatley
How Can I Get An IRS Payment Plan?
The terms available to you are based on the amount you owe, your record of compliance with the IRS, and your financial situation.
Before you enter into a payment agreement with the IRS, it’s a smart move to speak to a tax expert who can review your situation and make sure that whatever agreement you enter into with the IRS is part of a comprehensive long-term strategy.
Payment plans options with the IRS typically reflect the total amount due to the agency and how quickly the debt can be satisfied:
If you owe $10,000 or less and believe you can pay in full in 36 months. The IRS will likely offer you a Guaranteed Installment Agreement.
Easiest to qualify for
Limits you to one payment plan in a 5 year period
Availability also limited to taxpayers in compliance – returns filed and taxes due paid in full – in the previous 5 years
If you owe $50,000 or less and need up to six years to pay, you can enter into a Streamlined Direct Debit Installment Agreement (a.k.a. the IRS Fresh Start Program), without providing a financial statement and avoid the filing of any federal tax liens if the agreement is set up prior to the filing of the tax liens.
“If you owe $250,000 or more, you’ll need to submit a financial statement to the IRS to determine your ability to pay.”
- Alyssa Maloof Whatley
“As a CPA, I have worked closely with Alyssa to help with my clients' complicated tax issues. She is very honest, detailed, and responsive and will hold a client's hand until the issue is resolved and provide honest and clear advice along the way. I've seen her greatly reduce client's tax liabilities.”
“From the moment I started working with Alyssa, my distress & blood pressure decreased and my confidence increased that all of this would be okay! Super smart, very knowledgeable, and just delightful to work with. I'm so relieved and encouraged!”
“Alyssa and her team were fast, to the point and so professional with handling an issue I had with the IRS! She promised that the situation would be handled and in just a few short weeks she delivered on that promise. Thank you so much!”
“I find this attorney to be very honest and willing to assist her clients by guiding them in the right direction. I would recommend her to anyone that has a question on matters of her expertise. She is very knowledgeable and a pleasure to work with.”
“Alyssa is an amazing attorney! She is knowledgeable, efficient, and effective! Also, she is quick to respond, extremely pleasant, and very reassuring. We are so grateful for her expertise and help! Highly recommend!”
“Alyssa has helped me and my parents with an overwhelming tax issue. Something we never thought could be done. She's so kind, patient, thorough and knows tax law. I'd recommend her 100% to anyone when it comes to dealing with the IRS.”
“When I first spoke to Alyssa I was facing an IRS Audit for two years at the same time and felt extremely overwhelmed. Alyssa outlined a solid approach and was very easy to talk to and understand. My tax liabilities were brought down by 50%.”
“I was reluctant to reach out due to all the previous calls to other offices who where going to charge me more than what I owed on my taxes. I spoke with the Alyssa, she was very nice and it did not feel like a sales call. She helped me understand the type of letter I received and patient assisting me.”
“If you need legal assistance with your taxes, I strongly recommend Alyssa. Receiving a large tax notice from the IRS was very scary. Alyssa’s calm and level-headed demeanor helped ease my concerns. She responded quickly to my questions and knew just what to do.”
How partial pay agreements work
If you enter into a partial pay agreement or currently non-collectible status (“CNC”), the amount you pay is equal to your income minus your necessarily living expenses = X. If X is $150, then that is the amount you will pay. If X is $0, the IRS will place you in currently non-collectible status which is where the IRS places you in a financial hardship and does not expect monthly payments at all on your past due liability.