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IRS Installment Agreements
Structured Monthly Payments Based on What You Can Actually Afford
An installment agreement stops IRS enforcement action and gives you a structured path to resolve your tax debt. The right agreement type depends on your balance, financial position, and how much time remains on the collection statute.
How IRS Installment Agreements Work
An installment agreement is a formal arrangement with the IRS to pay your tax liability in monthly installments. Once approved, the IRS suspends most collection enforcement — though interest and penalties continue to accrue on the unpaid balance.
The IRS has three primary installment agreement types for individuals. The right choice depends on your total balance, whether you can afford to pay the full liability before the collection statute expires, and whether you want to avoid a federal tax lien.
Businesses have separate installment agreement options, including the In-Business Trust Fund Express Installment Agreement for payroll tax liabilities under $25,000.
Streamlined Installment Agreement
$1,500–$2,500For balances under $50,000 (individuals) or $25,000 (businesses). No financial statement required. Payments spread over 72 months or the remaining collection statute, whichever is shorter.
- No Form 433-A required
- Lien filing may be avoided under $25,000
- Direct debit reduces user fee
- Available online for qualifying balances
Financially Verified Installment Agreement
$2,500–$4,500For balances over $50,000 or when the streamlined terms do not produce a payment the taxpayer can afford. Requires a complete financial statement and documentation of income, expenses, and assets.
- Form 433-A or 433-F required
- Payment based on actual disposable income
- IRS may file a federal tax lien
- Reviewed periodically for financial changes
Partial-Pay Installment Agreement
$2,500–$4,500When the taxpayer cannot pay the full liability before the collection statute expires, the IRS may accept monthly payments that will not fully satisfy the debt. The remaining balance expires at the CSED.
- Requires Form 433-A with full documentation
- IRS will file a federal tax lien
- Reviewed every two years
- May convert to full-pay if financial position improves
Installment Agreement vs. Other Options
An installment agreement is appropriate when you can pay the full liability over time. If your income does not cover IRS-allowed living expenses, Currently Not Collectible status may be more appropriate. If your RCP is less than your total debt, an Offer in Compromise may be available.
Start with a Paid Tax Resolution Investigation
Before recommending any resolution strategy, we obtain your IRS transcripts, verify your compliance status, and deliver a written analysis of every option available to you.
No resolution strategy is recommended until we have reviewed your transcripts and financial position. Eligibility depends on your specific facts.