No. 05Practice area II · Tax Debt Relief
Installment Agreements & Payment Plans

Pay over time, on terms you can keep.

A payment plan lets you pay an IRS or state balance in monthly installments instead of all at once. We find the plan that fits your budget, set it up correctly, and help you keep it in good standing.

Form 9465IRS and state plansEnrolled Agent led
How a payment plan works Illustration of a balance getting smaller with each monthly payment until it is paid in full. Illustration How a payment plan works Balance owed one payment each month Month 1 Paid in full Interest and some penalties continue until the balance is paid.

Illustration only. Plan terms depend on your balance, your finances, and the IRS or state.

Who it is for

Is this you?

A payment plan is the most common way people handle a tax balance. It usually fits when the money is there, just not all at once.

You can pay, just not today

The balance is manageable if it is spread over months instead of due in full.

A balance due notice arrived

A CP14, CP501, or similar letter is asking for a payment you cannot make in one go.

You want collection to stop

With certain exceptions, the IRS cannot levy while a plan request is pending or a plan is in effect.

Your business owes too

Businesses can set up payment plans as well, with their own limits and process.

Which plan fits

Three kinds of plans, one right answer.

The right plan depends on how much you owe and how quickly you can realistically pay it. Choosing the wrong one costs fees, or leads to a default later.

Short term

Pay within 180 days

For balances you can clear in about six months
  • No setup fee.
  • Individuals can apply online, by phone, or by mail.
  • Interest and penalties continue until paid.
Long term

Monthly installment agreement

For balances that need more time
  • Individuals who owe $50,000 or less in combined tax, penalties, and interest, and have filed all returns, can apply online.
  • A setup fee applies, lowest with direct debit.
  • Businesses apply by phone or in person.
Larger balances

A plan built on your finances

When the balance is above the online limits, or the standard payment does not fit
  • A plan is still possible.
  • The IRS asks for a collection information statement showing income, expenses, and assets.
  • This is where representation helps the most.

State tax agencies have their own payment plans and rules. We set those up too.

What it costs and what it takes

Clear costs, simple conditions.

The IRS charges a one time setup fee on long term plans, and expects a few things from you while the plan is active.

  • All required tax returns are filed.
  • Each monthly payment is made on time.
  • New taxes are filed and paid on time while the plan is active.
  • Any refunds may be applied to the balance you owe.
IRS setup feesLong term plans
OnlinePhone, mail or in person
Direct debit$29$107
Other payment methods$69$178
Low incomeWaived with direct debit$43, may be reimbursed

Short term plans have no setup fee. Changing an existing plan costs $6 online or $89 by phone or mail, and changes to direct debit are free.

Failure to pay penalty

Cut in half while you are on a plan.

The monthly penalty on unpaid tax drops from 0.5% to 0.25% during an approved payment plan.

Without a plan 0.5% During an approved plan 0.25%
The process

From balance due to a plan in place.

Five steps, with one point of contact the whole way through.

  1. 1

    Free case review

    We confirm the balance with the IRS or the state and look at what you can realistically pay each month.

  2. 2

    Get compliant

    If any returns are missing, we file them first. A plan cannot be approved while required returns are outstanding.

  3. 3

    Choose the plan

    Short term, long term, or a plan based on a financial statement. We pick the type and payment amount that fit your budget.

  4. 4

    Apply on your behalf

    With your power of attorney, we request the plan online, by phone, or with Form 9465, and include any financial statement needed.

  5. 5

    Keep it on track

    We confirm the approval, set up direct debit if you want it, and help you adjust the plan if your situation changes.

Good to know

Before you sign up.

A payment plan is simple, but a few details matter for keeping it.

Interest keeps running

Interest and some penalties continue to be added until the balance is paid in full, so paying faster costs less.

Missed payments can default the plan

A missed payment or a new unpaid balance can put the plan in default, and a reinstatement fee may apply.

Direct debit costs less

It has the lowest setup fee, and automatic payments make a missed month far less likely.

Our role

What we do for you.

An Enrolled Agent leads your case, with the same person handling it from the first call to the final result.

The right option first

If a settlement or a pause on collections fits better than a plan, we tell you before anything is filed.

A payment you can sustain

We build the monthly amount around your real budget, not the highest number the IRS would accept.

Set up correctly

Missing returns, financial statements, and forms are handled so the request is not delayed or rejected.

Support after approval

If your income changes or a payment is at risk, we help you adjust the plan before it defaults.

Questions

About payment plans.

The questions we hear most. Anything else, ask us during your free case review.

Will a payment plan stop IRS collection?

With certain exceptions, the IRS is not allowed to levy while a request for a payment plan is pending or while a plan is in effect. A Notice of Federal Tax Lien may still be filed in some cases.

Can I pay more than the monthly amount?

Yes. You can pay extra or pay the balance off early at any time, which reduces the interest and penalties that keep adding up.

What happens if I miss a payment?

The plan can go into default. Contact us as soon as you know a payment is at risk, because it is usually easier to adjust a plan than to reinstate one.

Can I get a plan for state taxes?

Many states, including Missouri, offer their own payment plans with different rules and limits. We handle state plans as well as IRS plans.

Find a payment plan you can keep.

Tell us about your balance and your monthly budget. The first case review is free and confidential.

Free case reviewNo obligationOne point of contact