IRS Payment Plan Help
Set Up an IRS Payment Plan You Can Actually Afford
If you owe the IRS but cannot pay the full balance at once, an IRS payment plan, also called an installment agreement, may allow you to pay your tax debt over time.
Foxworth Tax Defense helps individuals and small business owners understand their payment options, avoid unnecessary collection problems, and negotiate an IRS payment arrangement based on their financial situation.
Call Foxworth Tax Defense at 618-744-1314 or schedule a confidential consultation today.
What Is an IRS Payment Plan?
An IRS payment plan is an agreement that allows you to make monthly payments toward your tax debt instead of paying the entire balance immediately.
Depending on the amount owed, your filing history, your current financial condition, and other factors, you may qualify for different types of installment agreements.
The goal is not simply to “get on a payment plan.” The goal is to establish a payment amount that resolves your tax debt while remaining realistic for your budget.
Types of IRS Installment Agreements
The IRS offers several payment arrangements, and the best option depends on your specific circumstances.
Short-Term Payment Plan
For taxpayers who can pay the balance within a relatively short period.
Long-Term Installment Agreement
Allows qualifying taxpayers to make monthly payments over a longer period.
Direct Debit Installment Agreement
Monthly payments are automatically withdrawn from your bank account.
Streamlined Installment Agreement
Some taxpayers may qualify for simplified approval without providing extensive financial documentation.
Partial Payment Installment Agreement
In certain situations, the IRS may accept monthly payments that do not fully pay the balance before the collection period expires. These agreements are subject to financial review and periodic reconsideration.
How Much Will My IRS Payment Be?
Your monthly payment is not always based solely on what you would prefer to pay.
The IRS may consider factors such as:
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Monthly household income
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Necessary living expenses
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Available cash
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Bank accounts
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Equity in assets
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Employment or business income
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Other tax debts
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Your ability to pay before the IRS collection statute expires
Foxworth Tax Defense reviews your financial information before proposing a payment amount so you understand how the IRS is likely to evaluate your case.
Can an IRS Payment Plan Stop Collections?
An approved installment agreement can provide important protection from certain IRS collection actions as long as you remain in compliance with the terms of the agreement.
However, timing matters.
If you have already received a Final Notice of Intent to Levy, wage garnishment threat, bank levy notice, or other collection notice, simply applying for a payment plan may not be enough to address every issue.
We can review your notices and determine what steps should be taken to protect you while your case is being resolved.
What If I Cannot Afford the IRS Payment They Want?
You may have other options.
Depending on your financial condition, you may qualify for:
A lower negotiated installment payment
Partial Payment Installment Agreement
Currently Not Collectible status
Offer in Compromise
Penalty abatement
The right resolution depends on your income, expenses, assets, tax balance, filing compliance, and long-term ability to pay.
Why Work with Foxworth Tax Defense?
Trying to negotiate directly with the IRS can be difficult when you do not know how the IRS calculates payment ability or what information may be used against you.
Foxworth Tax Defense can:
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Review your IRS account and outstanding balances
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Determine whether all required returns have been filed
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Analyze your financial condition
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Identify the most appropriate resolution option
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Communicate with the IRS on your behalf
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Negotiate an affordable installment agreement
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Request collection holds when appropriate
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Review penalties and other possible reductions
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Help you maintain compliance after the agreement is established
As an Enrolled Agent, Denise Foxworth is federally authorized to represent taxpayers before the IRS.
Do I Need to Be Current on My Tax Returns?
Generally, the IRS expects taxpayers to be current with required tax filings before approving most long-term resolution arrangements.
If you have unfiled tax returns, Foxworth Tax Defense can help you determine which returns need to be filed before requesting a payment agreement.
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IRS Payment Plan
Frequently Asked Questions
Can I set up an IRS payment plan myself?
Yes, some taxpayers can request an installment agreement directly from the IRS. However, taxpayers with larger balances, collection notices, unfiled returns, business tax debt, or limited ability to pay may benefit from professional representation.
Will interest and penalties stop on a payment plan?
Generally, interest and certain penalties continue to accrue until the tax balance is fully paid. Depending on your circumstances, you may also qualify for penalty relief.
Can the IRS reject my payment plan?
Yes. The IRS may reject a proposed agreement if the payment is considered too low, required tax returns are missing, current taxes are not being paid, or requested financial information is incomplete.
Can I change my existing IRS payment plan?
In many cases, yes. If your financial situation has changed, your installment agreement may be reviewed or modified.
What happens if I miss a payment?
Missing payments or failing to remain current with future tax obligations can cause the IRS to default your agreement and resume collection activity.
Can I qualify if I owe a large amount?
Possibly. Larger balances often require more detailed financial analysis and may involve different installment agreement procedures.
Don’t Ignore IRS Tax Debt
Ignoring an IRS balance can lead to increasing penalties and interest and potentially more serious collection actions.
If you cannot pay your tax debt in full, you may still have options.
Get Help with an IRS Payment Plan
Foxworth Tax Defense helps taxpayers understand their IRS payment options and develop a resolution strategy based on their actual financial circumstances.
