Set Up an Affordable IRS Payment Plan — Stop Collections Now
You do not have to pay everything at once. An IRS installment agreement lets you pay your tax debt in manageable monthly amounts — and once your plan is approved, the IRS generally stops bank levies, wage garnishments, and other collection actions. We help you find the right plan for your budget and get it in place fast.
Free & confidential. No obligation.
New Beginning Tax Solutions is a private tax resolution company. Not affiliated with the IRS or any government agency. Results vary based on individual circumstances.
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Don't Panic — You Can Pay Over Time
An IRS installment agreement lets you pay your tax debt in manageable monthly payments while stopping collections.
IRS Program Overview
What Is an IRS Installment Agreement?
An IRS installment agreement is a formal payment plan that lets you pay your outstanding federal tax debt over time — monthly, quarterly, or on another schedule — rather than in one immediate lump sum. The plan is legally binding on both sides: you agree to make scheduled payments and stay current on future filings, and the IRS agrees not to pursue enforced collection actions such as bank levies, wage garnishments, or property seizures as long as you remain compliant.
The IRS offers several different installment agreement tiers designed to match different debt levels and financial circumstances. For smaller balances — generally $10,000 or less — a guaranteed installment agreement may be available if you meet the statutory requirements. For balances up to $50,000, a streamlined installment agreement does not require a detailed Collection Information Statement, making the process faster and less intrusive. For larger balances, or for taxpayers who cannot afford full repayment even over an extended term, a regular installment agreement or partial payment installment agreement provides a path forward.
The most important thing to know is that an installment agreement is not just about payment terms — it is about peace of mind. Once your plan is approved, the IRS generally suspends active collection activities against you for the covered tax periods, which means the calls and letters stop and your wages and bank accounts are protected. But the agreement must be maintained: missed payments, new unpaid tax liabilities, or failure to file future returns can cause the agreement to default and collection to resume.
Payment Plan Key Facts
Setup Fee
$31–$225 (varies by type)
Processing Time
2–6 weeks (typical)
Required Form
Form 9465 (all plans)
Payment Method
Direct debit preferred
Low-income taxpayers may qualify for a reduced setup fee of $43 or a fee waiver. We verify eligibility during your review.
Plan Options
Four Types of IRS Installment Agreements
The right plan depends on how much you owe, your ability to pay, and your overall financial situation. We help you identify the best fit.
Guaranteed Installment Agreement
You owe $10,000 or less (excluding interest and penalties), have filed all required returns for the prior 6 years, have not entered into a previous installment agreement in the past 5 years, and can pay the balance within 3 years. If these conditions are met, the IRS must accept your proposal by law.
- Balance threshold: $10,000 or less
- Must have filed prior 6 years' returns
- No prior installment agreement in 5 years
- Full payment within 3 years required
Streamlined Installment Agreement
You owe between $10,000 and $50,000 and agree to pay the balance within 72 months (6 years). No detailed Collection Information Statement (Form 433-F or 433-A) is required — just basic information. A direct debit setup is typically required, and this is often the fastest path for many taxpayers.
- Balance up to $50,000
- No financial statement required
- 72-month (6-year) repayment term
- Direct debit required in most cases
Regular Installment Agreement
For balances above $50,000, or when you cannot meet streamlined requirements. The IRS requires a full Collection Information Statement (Form 433-A or 433-F) detailing income, expenses, assets, and liabilities. The IRS reviews your finances and determines the monthly payment based on allowable expenses. More documentation-intensive but available for any balance.
- Any balance size
- Full financial disclosure required
- IRS reviews income & living expenses
- Longer processing timelines
Partial Payment Installment Agreement (PPIA)
You cannot afford to pay the full balance even over an extended term. The IRS may accept reduced monthly payments if your financial analysis shows limited ability to pay. The remaining balance may eventually expire under the IRS Collection Statute Expiration Date (CSED) — typically 10 years from assessment. Periodic financial reviews required.
- For those who cannot pay in full
- Reduced monthly payments
- Remaining balance may expire (CSED)
- IRS reviews finances every 2 years
IRS Calculation
What the IRS Evaluates
When you apply for an installment agreement — especially for larger balances or partial payment plans — the IRS reviews your full financial picture to determine eligibility and calculate a reasonable monthly payment.
Monthly Income
All sources of household income — wages, self-employment, retirement distributions, investment income, rental income, Social Security, and other recurring funds. The IRS calculates your total gross monthly income.
Allowable Expenses
Living expenses measured against the IRS Collection Financial Standards — national and local standards for housing, transportation, food, clothing, out-of-pocket healthcare, and other necessary expenses. Luxury or discretionary spending is generally disallowed.
Total Tax Balance
The amount you owe across all tax periods, including tax, penalties, and interest. The IRS also considers how long it has left to collect under the Collection Statute Expiration Date (CSED) — typically 10 years from the date of assessment.
Filing & Payment Compliance
All tax returns must be filed and current. If you have unfiled returns, those must be addressed before any installment agreement can be approved. The IRS also checks whether you made estimated tax payments if self-employed.
IRS Forms
Key IRS Forms for Installment Agreements
Understanding which forms are required helps you prepare. We handle all form preparation and ensure accuracy before submission.
Form 9465 — Installment Agreement Request
The primary application form for all IRS installment agreements. It asks for basic taxpayer information, the proposed monthly payment amount, the total balance owed, and the preferred payment date each month. Required for every installment agreement application, whether submitted online, by phone, or by mail.
Form 433-A — Collection Information Statement (Individual)
Required for regular and partial payment installment agreements. A comprehensive, multi-page financial disclosure covering income, expenses, assets, credit lines, business interests, and account information. Used for balances above $50,000 or when the IRS needs a full financial picture.
Form 433-F — Collection Information Statement (Simplified)
A shorter version of Form 433-A used in certain situations. May be required for streamlined agreements if the IRS requests additional financial detail, or when balances are moderate but the IRS wants to verify income and expenses before approving.
Form 433-D — Installment Agreement (Direct Debit)
Used to set up automatic monthly payments from a checking account. Direct debit is often required for streamlined agreements and is recommended for all agreements because it reduces the risk of missed payments. The form authorizes the IRS to withdraw the agreed-upon monthly amount on a specific date.
Costs
Setup Fees and What It Costs
The IRS charges fees to establish an installment agreement. The amount depends on the type of agreement and how you pay.
Online application (direct debit)
$31 setup fee. Lowest-cost option. Available for qualifying streamlined agreements.
Online application (non-direct debit)
$130 setup fee. Available when you apply online but do not set up automatic payments.
Phone or mail application (direct debit)
$107 setup fee. When applying by phone, mail, or in person with direct debit.
Phone or mail application (non-direct debit)
$225 setup fee. Highest fee tier. Applies when applying by phone or mail without direct debit.
Low-income taxpayer reduced fee
$43 or waived entirely. Taxpayers below 250% of federal poverty guidelines may qualify for a reduced or waived fee. Form 13844 may be required.
Reinstatement fee
$89 (if you previously defaulted on a plan). Covers re-establishing a defaulted installment agreement.
Note on Professional Fees
Our professional fees are separate from IRS fees. During your free consultation, we provide a transparent fee quote based on the complexity of your case and the amount of work required. There is never any obligation to proceed.
How We Help
Our Payment Plan Process
We guide you through each step — from determining which plan fits to getting it in place and keeping it current.
Free Case Evaluation
We review your tax debt, filing history, and current financial situation to determine which installment agreement type may be available to you.
Day 1
Financial Analysis & Budgeting
We build a detailed budget using IRS Collection Financial Standards so we know exactly what monthly payment the IRS is likely to accept.
Day 1–3
Plan Selection & Strategy
We identify the right plan — guaranteed, streamlined, regular, or PPIA — and explain the pros, cons, costs, and timeline of each.
Day 2–5
Application Preparation
We prepare Form 9465 and, if required, Forms 433-A or 433-F with all supporting financial documentation organized to IRS specifications.
Week 1–2
IRS Submission & Follow-Up
We submit the application and handle all IRS correspondence. If the IRS proposes different terms, we negotiate on your behalf.
Week 2–4
Ongoing Compliance Support
We help you stay current on both payments and future filings so your installment agreement remains in good standing, avoiding default and reinstatement of collection actions.
Ongoing
Why Professional Help
DIY vs Professional Payment Plan Setup
Preparation
Documents You May Need
Having these ready helps us evaluate your situation accurately and prepare your application for the right type of installment agreement.
Most recent 3 months of pay stubs
For all household earners
Last 2 years of filed federal tax returns
Signed copies of Forms 1040
3 months of statements for all bank accounts
Checking, savings, money market
Proof of other income
Rental, retirement, investment, Social Security
Mortgage or rent statements
With monthly payment amount
Vehicle loan statements and balances
Current payoff amounts and monthly payments
Utility bills
Electric, gas, water, internet, phone
Insurance statements
Health, auto, homeowners/renters
Child support or alimony orders
If applicable, with payment amounts
List of all monthly living expenses
Categorized per IRS standards
Any IRS notices or collection letters
CP-series notices, LT11, LT1058, etc.
Current student loan or debt statements
Federal and private loan balances
Warning
What Happens If You Default on a Payment Plan?
Immediate Consequences of Default
If you miss a payment and fail to catch up after receiving IRS notice CP 523 (Notice of Intent to Terminate), the IRS will terminate your installment agreement. Once terminated, the IRS can immediately resume enforced collection — including bank levies, wage garnishments, and tax liens. There is typically a 30-day window to respond to CP 523 and either catch up on missed payments or propose a modified plan. Do not ignore this notice.
Reinstatement Is Not Guaranteed
You can request reinstatement, but the IRS is not obligated to approve it — especially if you have defaulted before or have new unpaid tax liabilities. A reinstatement fee of $89 applies. If reinstatement is denied, you may need to explore other resolution options such as Currently Not Collectible status, an Offer in Compromise, or bankruptcy. The best protection against default is setting a realistic monthly payment from the start — which is exactly what our budgeting process ensures.
Important Concept
Understanding the Collection Statute Expiration Date (CSED)
The IRS generally has 10 years from the date a tax liability is assessed to collect it. This deadline is called the Collection Statute Expiration Date, or CSED. Once the CSED passes, the IRS can no longer legally collect that tax debt — the balance expires and collection actions must stop.
The CSED is critical when considering a payment plan. Under a Partial Payment Installment Agreement (PPIA), you may pay less than the full balance each month, and the remaining unpaid amount simply expires when the CSED is reached. However, entering into an installment agreement may, in some cases, suspend (toll) the CSED clock, extending the collection period. Understanding your CSED dates is essential before committing to any payment plan.
We pull your IRS account transcripts and calculate CSED dates for each tax period during your free case evaluation. This analysis helps determine whether a PPIA — where you pay less than the full balance — is a viable strategy, or whether a standard installment agreement makes more financial sense given the time remaining on the collection clock.
CSED Expiration May Trigger Tax Liability
If a tax debt is forgiven or expires under the CSED in a year where you are solvent, the IRS may issue a Form 1099-C (Cancellation of Debt) — potentially creating taxable income. This is a complex area. We discuss all tax implications with you before recommending a strategy.
Self-Assessment
Payment Plan Decision Tree
Answer these questions to understand which IRS installment agreement might be right for you.
1. Do you owe $10,000 or less and have a clean compliance history?
You may qualify for a Guaranteed Installment Agreement — the IRS must accept your proposal if you meet all statutory requirements. Full payment must be completed within 3 years.
If you owe more than $10,000, other plan types are available. Move to the next question to narrow your options.
2. Do you owe $50,000 or less and can pay within 72 months?
A Streamlined Installment Agreement is likely your best option — no detailed financial statement required, faster processing, and direct debit setup. This is the most common path for taxpayers in this range.
For balances above $50,000 or longer repayment needs, you will need a Regular Installment Agreement with full financial disclosure. Proceed to the next question.
3. Can you afford to pay the full balance over time with a realistic monthly payment?
A standard installment agreement (guaranteed, streamlined, or regular) is appropriate. We help determine the right tier and calculate a monthly payment that fits your budget under IRS Collection Financial Standards.
If your budget cannot support full repayment even over an extended term, a Partial Payment Installment Agreement (PPIA) may be your path. The remaining balance may expire under the CSED.
4. Do you have unfiled tax returns for any tax year?
Unfiled returns must be addressed before any installment agreement can be approved. The IRS requires full filing compliance as a condition of entering any payment plan. We can help prepare and file missing returns first.
If all your returns are filed and current, you meet a key IRS requirement. Filing compliance is mandatory — all returns must be filed before the IRS will approve any installment agreement.
5. Have you previously defaulted on an IRS installment agreement?
Reinstatement is possible but not guaranteed. The IRS may require a higher monthly payment, additional financial documentation, or a direct debit arrangement. A $89 reinstatement fee typically applies. We can evaluate your chances before you apply.
If you have no prior defaults, your application is stronger — the IRS views first-time applicants favorably. We can help you secure the best possible terms from the start to avoid future default risk.
Real Results
Payment Plan Case Examples
See how we have helped clients secure affordable IRS payment plans and stop collection actions.
Streamlined Plan — $38,000 Balance
Problem
A married couple owed $38,000 across three tax years and had received a CP504 notice threatening levy of their joint bank accounts. They could not pay the full amount upfront.
Resolution
We secured a streamlined installment agreement at $528/month over 72 months with direct debit. No financial statement was required, the CP504 process was halted, and the couple's accounts were protected.
Partial Payment Plan — Large Balance
Problem
A self-employed contractor owed $127,000 in back taxes and had irregular income that made full repayment impossible. The IRS had filed a federal tax lien and was initiating levy proceedings.
Resolution
We prepared a detailed Form 433-A and negotiated a Partial Payment Installment Agreement at $750/month. Because the CSED for several tax periods was within 4 years, the client will pay far less than the full balance.
Default Reinstatement After Job Loss
Problem
A single mother had defaulted on her installment agreement after losing her job. The IRS issued a CP523 Notice of Intent to Terminate and was preparing to resume wage garnishment.
Resolution
We contacted the IRS within the 30-day CP523 window, demonstrated changed financial circumstances with updated documentation, and secured reinstatement at a reduced monthly payment that matched her new income level.
Essential References
IRS Forms & Notices
Key IRS forms and notices relevant to installment agreements and payment plans.
Installment Agreement Request
The primary application form for all IRS installment agreements. Required for every payment plan application.
Collection Information Statement
Comprehensive financial disclosure required for regular and partial payment installment agreements with balances above $50,000.
Collection Info Statement (Simplified)
A shorter financial disclosure form used in certain streamlined or moderate-balance situations.
Direct Debit Installment Agreement
Authorizes the IRS to automatically withdraw monthly payments. Required for streamlined agreements.
Power of Attorney
Authorizes a tax professional to represent you before the IRS for your installment agreement case.
Balance Due Notice
First notice of an outstanding balance. Responding at this stage preserves the most payment plan options.
Urgent Notice — Intent to Levy
Warns of imminent levy action. An installment agreement can stop enforcement if filed in time.
Notice of Intent to Terminate
Notifies you that your installment agreement is about to be terminated due to missed payments. 30 days to respond.
Low-Income Fee Reduction Request
Request reduced or waived installment agreement setup fees for taxpayers below 250% of poverty guidelines.
Final Notice of Intent to Levy
Final levy warning. A CDP hearing request or installment agreement can stop enforcement within 30 days.
Transcript Request
Request IRS account transcripts to verify assessments, payments, and CSED dates before applying.
IRS Collection Process
IRS publication explaining the collection process, including installment agreements and taxpayer rights.
Further Reading
Related Resources
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Learn moreQuestions
Payment Plan FAQ
An IRS installment agreement is a formal payment plan that allows you to pay your tax debt in monthly installments over time instead of in one lump sum. The IRS offers several types of installment agreements depending on how much you owe and your financial situation. While you are on an approved plan and stay current, the IRS generally does not levy your bank accounts or garnish your wages for those tax periods.
The IRS offers several types: a guaranteed installment agreement for those who owe $10,000 or less and meet specific requirements; a streamlined installment agreement for balances up to $50,000 without requiring a financial statement; a regular installment agreement for larger balances that requires a Collection Information Statement; and a partial payment installment agreement (PPIA) where you pay less than the full amount each month and the remaining balance may expire under the collection statute.
The IRS calculates your monthly payment based on your income minus allowable living expenses under the IRS Collection Financial Standards. For streamlined agreements, the payment is typically the total balance divided by 72 months, provided that amount fits within your budget. For larger balances or partial payment agreements, the IRS reviews a detailed financial statement and applies its allowable expense standards to determine what you can reasonably pay each month.
Yes — while an installment agreement is in effect and you remain current on payments and future filings, the IRS generally will not levy your bank accounts, garnish your wages, or seize your property for the tax periods covered by the agreement. If you already have an active levy, the IRS may release it once an installment agreement is approved, though this depends on your specific situation and compliance history.
If you miss a payment, the IRS may declare the installment agreement in default. Before terminating the agreement, the IRS typically sends a notice and gives you an opportunity to catch up or propose a modified plan. If the agreement is terminated, the IRS can resume collection actions including levies and liens. It is important to contact the IRS or your representative immediately if you anticipate missing a payment — alternatives may be available.
The IRS accepts applications for installment agreements online, by phone, or by mail using Form 9465. For streamlined agreements under $50,000, the online application is often the fastest route. For larger balances or partial payment plans, you must also submit Form 433-F or Form 433-A with supporting financial documentation. A setup fee applies, though low-income taxpayers may qualify for a reduced fee.
Interest and any applicable penalties continue to accrue on the unpaid balance while you are on an installment agreement. Entering a payment plan does not stop the clock on interest — it only provides a structured way to pay down the balance and protects you from enforced collection. This is why paying the balance as quickly as your budget allows is often the most cost-effective strategy.
Yes. If your financial situation changes — for example, you lose a job, experience a medical event, or see a significant change in income — you can request a modification to your installment agreement. The IRS will review your updated financial information and may adjust the monthly payment amount, extend the term, or, in some cases, convert the plan to a partial payment installment agreement if full payment is no longer feasible.
Results
Payment Plan Success by the Numbers
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Taxpayers Helped Nationwide
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Installment Agreements Available
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