Long-Term Installment Agreement

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A long-term installment agreement — also called a payment plan or IA — is a formal arrangement with the IRS that allows you to pay your tax debt in monthly installments over an extended period of time. It is the most common IRS resolution option and is used by millions of taxpayers every year.

An installment agreement does not reduce the amount you owe — but it does give you a structured, manageable way to pay it off while preventing the IRS from taking enforced collection action against you. Our tax preparation services are designed to help your business stay compliant and reduce your tax liabilities. We work with you to ensure that your taxes are filed accurately and in a timely manner.

Individuals:

• Owe $50,000 or less in combined tax, penalties, and interest — streamlined agreement with minimal paperwork
• Owe more than $50,000 — full financial disclosure required (Form 433-F)
• Must be current on all tax return filings
• Cannot be in an open bankruptcy proceeding

Businesses:

• Owe $25,000 or less — streamlined agreement available
• Must be current on all payroll tax deposits and filings

Guaranteed Installment Agreement:
Available if you owe $10,000 or less (excluding penalties and interest), have filed all returns for the past five years, and have not had an installment agreement in the past five years. The IRS must accept this agreement.

Streamlined Installment Agreement:
Available for balances up to $50,000. Minimal financial disclosure required. The monthly payment is calculated to pay the full balance within 72 months.

Non-Streamlined Installment Agreement:
Required for balances over $50,000. Full financial disclosure required through Form 433-A or 433-F. The IRS evaluates your income, expenses, and assets to determine an appropriate monthly payment.

Online:
Use the IRS Online Payment Agreement tool at IRS.gov for balances under $50,000. Fast, easy, and available 24/7.

By phone:
Call 1-800-829-1040 to set up an agreement with an IRS representative.

By mail or fax:
Submit Form 9465 (Installment Agreement Request) and if required Form 433-F (Collection Information Statement).

Through a tax professional:
An Enrolled Agent can set up the agreement on your behalf, often negotiating the most favorable payment terms.

Application Method                                  Regular Fee                        Low-Income Fee

Online — Direct Debit                                   $31                                        $31

Online — Other payment                            $130                                      $43

Phone/Mail/In-Person — Direct Debit   $107                                      $43

Phone/Mail/In-Person — Other                $225                                      $43 

 Setting up direct debit (automatic monthly withdrawal) is strongly recommended — it reduces the setup fee, reduces the chance of a missed payment, and gives the IRS confidence in your compliance. 

Once you have an installment agreement, you must:

• Make every monthly payment on time
• File all future tax returns on time
• Pay any future tax balances in full or immediately address them
• Update the IRS if your financial situation changes significantly

Missing a payment or failing to file future returns can cause your installment agreement to default, which puts you back at risk for enforced collection.

Yes. Even while on an installment agreement you can request penalty abatement. Reducing your penalty balance means more of each payment goes toward the actual tax — helping you pay off the debt faster.Our tax preparation services are designed to help your business stay compliant and reduce your tax liabilities. We work with you to ensure that your taxes are filed accurately and in a timely manner.

Our tax planning and consulting services help you identify opportunities to reduce your tax liabilities and optimize your tax strategy. We can help you navigate complex tax laws and regulations to ensure that your business is taking advantage of all available tax benefits.

 Setting up an installment agreement correctly — with the right payment amount and terms — can make a significant difference in how quickly and affordably you resolve your tax debt.  

 As an IRS Enrolled Agent, I can set up your agreement, negotiate the best possible terms, and make sure you stay in good standing. Book a free consultation today!