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IRS Licensed Enrolled Agents
IRS Installment Agreement: Pay Your Tax Debt Over Time
If you owe taxes but cannot pay in full, an IRS installment agreement lets you spread the balance into affordable monthly payments. We set up the plan, negotiate terms based on what you can truly afford, and keep the IRS from escalating collection while you pay.
* Free initial consultation with a licensed tax advisor to assess your options.
What Is an IRS Installment Agreement?
An installment agreement is a formal arrangement with the IRS to pay your tax debt in monthly installments. It is the most common resolution for taxpayers who cannot pay in full but can pay over time. While the agreement is active and you remain compliant, the IRS generally suspends levies and most enforced collection.
Agreements are available for both individual and business balances, and the IRS offers streamlined (no financial statement) options for balances under certain thresholds. Larger balances require a financial disclosure so the payment is based on your real ability to pay.
Types of Payment Plans
- Guaranteed / streamlined: Available online for balances under set thresholds with minimal paperwork and no financial statement.
- Partial payment: A Part 5 installment agreement (Form 9465 + Form 433-A) where the monthly amount is based on your disposable income, and the debt may not be fully paid before the collection statute expires.
- Direct debit: Payments pulled automatically from your bank account - typically required for larger balances and often reduces setup fees.
Why Work With a Licensed Tax Advisor
The IRS calculates your payment from a financial formula, not a guess. Presenting the documentation correctly is what keeps your monthly payment realistic and the plan from defaulting:
Right payment amount We base the request on your actual income and allowable expenses so the payment fits your budget and is less likely to default.
Fewer penalties An active agreement can reduce certain penalties and stops most collection activity while you stay compliant.
Single point of contact With a signed Power of Attorney, we handle IRS notices and calls so you are not managing the agency directly.
Our Installment Agreement Process
- Free consultation. We review your balance, income, and expenses to identify the best resolution path (plan, partial-pay, OIC, or hardship).
- Get compliant. We file any unfiled returns, since the IRS will not approve a plan with missing filings.
- Prepare the request. We complete Form 9465 (and Form 433-A/433-B when needed) and submit it with the correct user fee.
- Set up payments. Once approved, we arrange direct debit or another method and confirm the monthly amount and dates.
- Stay on track. We monitor the agreement, handle correspondence, and help you avoid default by staying current on new filings and payments.
Frequently Asked Questions
Not sure whether a payment plan, settlement, or hardship status fits you best? Schedule a free consultation and we will review your options confidentially.
What is an IRS installment agreement?
An IRS installment agreement is a payment plan that lets you pay your tax balance over time instead of in a single lump sum. Once approved, you make monthly payments (by direct debit, card, or check) until the debt, plus accruing interest and penalties, is paid off. It stops most enforced collection while you stay current.
How do I set up an installment agreement?
For balances under certain thresholds, you can often apply online through the IRS Online Payment Agreement tool without calling. Larger or more complex balances, or any business debt, usually require submitting Form 9465 (Installment Agreement Request), sometimes with a financial statement (Form 433-D or 433-B). We prepare and submit these for you and handle IRS correspondence.
Will I still owe penalties and interest?
Yes. Interest and the failure-to-pay penalty continue to accrue until the balance is paid in full, but the late-deposit and some other penalties are generally reduced once an installment agreement is in place. Paying faster lowers the total cost.
Can the IRS still levy my assets under a payment plan?
Once a timely filed installment agreement is accepted, the IRS typically suspends levies and most collection activity as long as you make payments on time and stay compliant with future filings. Missing a payment or a new tax year can default the agreement and restart collection.
What if I cannot afford the proposed monthly payment?
You can request a lower amount by submitting a detailed financial statement (Form 433-A/433-B) so the IRS can base the payment on your actual disposable income. In cases of true hardship, Currently Not Collectible (CNC) status may pause collection entirely, though the debt and interest remain.
Does an installment agreement affect my credit?
The IRS does not report payment plans to consumer credit bureaus, so the agreement itself does not appear on your credit report. However, a federal tax lien - which can be filed on larger balances - may be reported and affect credit, and resolving the debt is the path to lien release.
Why file your taxes with Mraz Tax Solutions?
We focus on individual and small business returns, whether you are filing a W-2, reporting 1099 income from the sharing economy, or running your own company.
Our process is designed to minimize your tax burden and secure the maximum refund you are legally entitled to by taking time to understand your situation, your records, and your long-term goals.
Individual & joint returns
Small business & self-employed
Credit & deduction optimization
Tax Resolution Help
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