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What kind of Payment Plans does the IRS offer?

Tasked with the responsibility of recovering tax debts from tax-paying Americans, the IRS offers payment plans that regulate all the processes of taxation. This includes carrying out audits, receiving tax returns, and the enforcement of tax laws.

If you find that the amount you owe in taxes is much too heavy for you, then a payment plan is something you may like to consider as an option for resolving your tax debts.

A payment plan is a negotiation between you and the IRS. The IRS gives you the leniency of paying your tax debts gradually until they are resolved, and you make monthly payments to the organization until the entire sum of your tax debt is covered.

The IRS, in keeping to their own end of the bargain will not take punitive actions against you so long as you remain faithful to your monthly payment agreements. Examples of punitive actions that the IRS may take against you include wage garnishments, tax liens, and property seizure, amongst other things.

An IRS payment plan allows you to manage your tax debt by reducing it into payable sums that your income can support, spread over a period of time. If you are currently saddled with tax debt that seems overwhelming, and you do not know where to begin, contact us now to begin the process of working out a tax payment plan with the IRS on your behalf. We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at

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When it comes to the issue of payment plans, the IRS offers you five options to choose from. They are:

  1. Guaranteed Installment Agreement Payment plans:

This IRS payment plan is available to taxpayers who owe up to $10,000 or less in unpaid taxes. This is perhaps the easiest pan to qualify for, all you have to do is ensure that you meet certain criteria stipulated by the IRS. You have the option of applying for this payment plan online, however, to increase your chances of success, we strongly advise that you seek the help of a qualified tax professional. Call us now at 888-585-8629

  1. Streamlined Installment Agreement Payment plans:

Another payment plan offered by the IRS is a streamlined installment agreement. This plan covers tax debts of up to $50,000 and allows you to make payments on your debts for a period of up to six years. Additionally, you do not need a financial statement to qualify for this plan.


  1. Installment agreement for amounts exceeding $50,000:

When the amount that you owe in taxes is at an all-time high, you may experience difficulty successfully applying for an IRS payment program. The IRS requires you to submit a financial statement for this one, as they will need to review your financial situation thoroughly, so as to be able to ascertain whether or not you can pay the debt back and how long it will take.


  1. Partial Payment Installment Agreement:

The IRS may be lenient enough to allow you to pay only a part of the total amount you owe in debts and offset the remainder if there is sufficient evidence that proves that you can not afford to meet up with the minimum monthly payments for a guaranteed or streamlined installment agreement. This payment plan allows you a longer period of time to make repayments on your debt; however, the IRS is required to evaluate your financial situation bi-annually to ensure that you still can’t afford to make the minimum payments on your tax debts.


  1. An offer in compromise (or settlement agreement):

Although getting the IRS to agree to an offer in compromise is no easy task, it gives you a huge break in the amount you have to repay in taxes. It is so difficult getting an offer in compromise because the IRS will rather have you pay all the money you owe them, however, if you can prove that you aren’t in a position to make payments, you may be able to get them to agree to this plan.

A request for an offer in compromise has a greater chance of getting approved if you have a team of qualified professionals fighting on your behalf. Call us now to gain access to our team of qualified tax professionals.


Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties, of any kind, under U.S. federal tax laws.