How To Apply For An IRS Streamlined Installment Agreement
An IRS installment agreement allows eligible taxpayers to pay a tax balance over time. The IRS now offers Simple Payment Plans for qualified individuals and businesses. Eligibility, payment amounts and terms depend on the balance and applicable IRS rules.
What is a Streamlined Installment Agreement?
An installment agreement establishes scheduled payments toward an outstanding balance. Interest and applicable penalties generally continue until payment is complete, and setup fees may apply. Payment requirements depend on the agreement.
Who can get a Streamlined Installment Agreement with the IRS?
Individuals generally qualify for a Simple Payment Plan with $50,000 or less in assessed taxes, penalties and interest and current filing and payment compliance. Business thresholds depend on the type of tax. Other arrangements may be available for larger balances. Terms depend on the remaining collection period and approved payment amount.
How to Apply for a Streamlined Installment Agreement with the IRS?
Individuals can apply through their IRS online account. Taxpayers can also call the number on their IRS notice or contact a Taxpayer Assistance Center. Simple Payment Plans do not require a collection information statement; other arrangements may require financial details.
When you should not apply for a Streamlined Installment Agreement
Paying an outstanding balance sooner can reduce additional interest and penalties. A payment plan spreads payments over time, so review the total cost and the ability to maintain the agreed schedule.
Conclusion
A payment plan requires affordable, timely payments and ongoing tax compliance. Contact the IRS promptly if circumstances change or a proposed termination notice arrives.
Official references: Current IRS payment plans · Payment-plan requirements.
Speak to a Tax Relief Specialist
Our specialists take the time to listen and understand your current situation and goals (including any immediate tax relief you may need to stop or prevent a wage garnishment, lien, or bank levy).
