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IRS Payment Plans: Which One Fits Your Situation

The IRS offers several types of payment plans. Here is how to pick the right one and set it up without overpaying.

Under $50K: Streamlined

If you owe $50,000 or less in combined tax, penalties, and interest, you can get a streamlined installment agreement with no financial disclosure. Just agree to pay the full balance within 72 months or before the CSED, whichever comes first. You can set this up online.

Over $50K: Non-Streamlined

Larger balances require Form 433-A or 433-F financial disclosure. The IRS analyzes your income and expenses to determine your payment. The payment may be less than what would be needed to pay the full balance, creating a partial payment installment agreement.

Under $10K: Guaranteed

If you owe $10,000 or less and have been compliant, the IRS must grant an installment agreement. This is the only type the IRS is legally required to accept.

The Direct Debit Advantage

Agreeing to direct debit payments from your bank account can qualify you for a lien withdrawal, removing the public record of the lien while you pay.

A payment plan is not ideal. But it stops enforcement, and it gives you a predictable path to resolution.

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Tax attorney Darrin T. Mish | 32 years | $100M+ resolved