An Installment Agreement is an IRS payment plan that allows you to pay your tax debt in smaller monthly payments rather than in one lump sum. This arrangement can be a lifesaver for taxpayers who cannot fully pay their tax liability immediately, helping them avoid severe collection actions from the IRS.

The IRS offers several different types of installment agreements that you can choose from to match your financial situation. Each type has specific qualification requirements and agreements for compliance. From the options below, consider factors such as the amount you owe, your ability to pay, and how quickly you can settle your tax debt. Here are the primary IRS payment plan options:

• If you owe $10,000 or less.
• You may be eligible if you have filed all income tax returns, paid any income tax due, and haven’t entered into an installment agreement in the past 5 years.
• Must be paid within 3 years while remaining in compliance.
• Perfect for breaking smaller tax debts into manageable monthly payments.

• If you owe up to $50,000.
• You can make equal monthly payments over 6 years or by the Collection Statute Expiration Date (CSED) – whichever comes first.
• A simplified application process with minimal financial documentation.

• If you cannot pay the full amount before the CSED date.
• You may be eligible if the required installment agreement amount is greater than your disposable income.
• Requires detailed financial documentation and your financial situation will be subject to future evaluations to determine continued eligibility.
• This may result in paying less than the full amount owed.

Generally, Installment Agreements only last for a maximum of six years. If your tax liability is relatively small and you can eliminate it over six years with manageable monthly payments, an Installment Agreement may be the appropriate resolution for you.

The key benefits of an Installment Agreement include:

• No aggressive collection activities like levies and liens as long as you stay current on payments
• Potential reduction of future penalties
• No more IRS collection letters or penalties

The downside is that the IRS will continue to assess interest on your account until the debt is completely paid off.

To qualify for an Installment Agreement, or any tax relief program, you must first ensure that you are compliant with the IRS. Having any unfiled tax returns is a serious roadblock – you must be up to date on all your tax filings.

Once you are compliant, you can submit IRS Form 9465 to request an IRS payment plan on your current balance.

Form 9465 is used to apply for an Installment Agreement officially and to request a monthly payment amount with the IRS. To complete this form, you will need to provide:

• Personal identification as well as business information (if applicable)
• The amount you can feasibly pay per month 
• Your preferred day of the month to make your payments
• Details about your tax liability

If your installment agreement is rejected, the IRS will usually send notice within 30 days of your form application. Some common reasons for IA rejection include incomplete financial documents, inability to pay the proposed amount, or reporting false information.

The good news is that you will have 30 days from the date of rejection to appeal it, so not all hope is lost. Here are the next steps you can take:

• Exercise your right to appeal the installment agreement rejection.
• Consider alternative payment options.
• Consult with a tax professional.

If you need assistance with filing your taxes or to check your qualifications, contact a TaxRise specialist at 833-419-RISE (7473). We can provide a free consultation to help find the best course of action for your tax debt relief.

When filing for bankruptcy, managing IRS tax debt can be especially difficult. Taxpayers in Chapter 13 or Chapter 7 bankruptcy may still owe back taxes, and IRS installment agreements offer a way to address these obligations. However, there are different considerations and terms depending on the type of bankruptcy filed.

• The installment agreement payments must be incorporated into your overall Chapter 13 plan.
• Any existing installment agreements prior to bankruptcy will be suspended until your case is resolved.
• Once your Chapter 13 case is completed, you can work with the IRS to reinstate or modify the installment agreement.

Entering into an installment agreement is more challenging if you’re in Chapter 7 bankruptcy, which focuses on liquidating assets to discharge eligible debts. In most cases, your tax debt will be discharged during the Chapter 7 process. However, there are a few exceptions:

• Certain types of recent tax debt may not be dischargeable in Chapter 7.
• If you have non-dischargeable tax debt, you may be able to set up an IRS installment agreement to pay it off over time.
• The IRS must approve any installment agreement during an active Chapter 7 case.

Applying or taking care of IRS installment agreements while in bankruptcy requires careful planning and coordination. By working with trusted tax professionals, you can get the most favorable terms possible

Yes, you can qualify for an Installment Agreement without professional representation. However, depending on your balance amount and financial situation, you might be better served working with a professional.

Installment Agreements are often the easiest resolutions to achieve because it guarantees a monthly payment to the IRS. The IRS calculates a monthly payment plan they deem financially reasonable based on information provided by that taxpayer.

The IRS calculates your monthly payment amount based on several different factors, including your tax debt amount, income, and expenses the IRS deems allowable based on your zip code.

Without professional representation, you run the risk of the IRS placing you in a less-than-optimal payment plan. The plan could be too long or the monthly payments too high – which may increase your chances of defaulting.

Installment Agreements often come with terms stating that if a taxpayer defaults on their payment, the agreement will become null-and-void, and immediate collection activities such as wage garnishments, levies, and liens will go into effect.

As mentioned above, the IRS prefers to enroll taxpayers who owe in Installment Agreements. Unlike some other programs, this allows the IRS to collect as much money as they can to satisfy the taxpayer’s liability. Nevertheless, an installment agreement is a valid and manageable form of tax debt relief, but some taxpayers may qualify for a better IRS program.

When you work with TaxRise to secure your Installment Agreement, our tax professionals will work to get you the lowest possible monthly payment.

Reaching a compromise with the IRS for a reasonable monthly payment can be difficult. By entrusting our experienced team, we provide significant benefits:

• We’ll work to get you the lowest possible monthly payment by negotiating with the IRS on your behalf.
• Our tax professionals know the terminology and financial documentation the IRS may want, reducing the risk of suboptimal payment plans.
• We have a track record of achieving installment agreements with the minimum allowable monthly payment, lifting or reducing wage garnishments, and reversing bank levies.

Our team can guide you through the process and help you determine the best type of installment agreement for your unique financial situation. Whether you qualify for a guaranteed, streamlined, or partial payment plan, we’ll negotiate the most favorable terms on your behalf and handle all the necessary paperwork.

Call 833-419-RISE (7473) and schedule a free, no-obligation consultation today to learn how an IRS installment agreement can give you the breathing room you need. Get the support you deserve and take the first step towards financial freedom today!