IRS Installment Agreements
Guaranteed Installment Agreement
This option is available to taxpayers who have consistently filed and paid their taxes and owe less than $10,000 (excluding interest and penalties). It allows you to avoid a federal tax lien and establish a payment plan that ensures you become debt-free within three years.
Streamlined Installment Agreement
This option is available to taxpayers who owe less than $50,000, including penalties and interest. To set up this installment agreement, taxpayers are required to pay a setup fee. These plans also help avoid federal tax liens and allow you to become debt-free within seven years.
Partial Payment Installment Agreement
This option is available to taxpayers who owe more than $10,000 and can demonstrate an inability to pay their full tax liability. It allows you to arrange a monthly payment plan and settle your tax debt for less than the total amount owed. However, this plan can be complex and requires submitting extensive documentation about your tax debts and financial circumstances.
Non-Streamlined Installment Agreement
This option is available to taxpayers who owe more than $50,000. To establish this payment plan, the taxpayer or their representative must negotiate directly with the IRS. This process involves submitting paperwork detailing their tax debt, income, liabilities, assets, and other financial information.