Settle what you owe
Installment agreements
A payment plan is the most common way tax debt gets resolved — and the amount you end up paying each month is far more negotiable than most people realize.
An installment agreement is a formal arrangement to pay your balance over time. Once one is in place and you're keeping to it, the IRS generally stops active collection: no new levies, no garnishment, no letters escalating toward enforcement. For most people carrying a balance, that stability is the single biggest relief available.
Not all plans are the same. Smaller balances can often be set up quickly on streamlined terms. Larger balances, or plans that run past the collection deadline, require a financial disclosure — and that's where the monthly figure gets decided. The IRS compares your income against allowable living-expense standards, and the difference becomes your proposed payment. Those standards have real room in them: housing, transportation, health care, and necessary business expenses are all categories where a properly documented position can move the number substantially.
The risk of setting one up alone is agreeing to a payment that looks survivable on the phone and isn't in practice. A defaulted agreement puts you back at the start, often with a more aggressive collector. We build the plan around a budget you can actually hold to for its full term, and where the balance is large we look first at whether penalty relief or a settlement should be resolved before the payment is locked in.
How we handle it
The sequence we follow.
Confirm the balance
Transcripts tell us what's actually owed by year, including penalties and interest, and how long the IRS has left to collect.
Build the budget
We assemble your income and expenses against IRS allowable standards, documenting the categories that support a lower payment.
Propose and negotiate
We request the agreement type that fits — streamlined, non-streamlined, or partial-pay — and negotiate the monthly figure.
Keep it in good standing
We flag what would default the agreement, so a missed estimate or a new balance doesn't undo the work.
The part people miss
Interest and some penalties keep running while you pay, so a long plan costs more overall than the balance you started with. That's a reason to look at penalty abatement and settlement options before locking in a plan — not a reason to avoid one. A plan you can hold beats an aggressive plan you default on, every time.
FAQ
Installment agreements: common questions
Will a payment plan stop wage garnishment?
An installment agreement in good standing generally stops ongoing enforced collection, and an existing garnishment can often be released once an agreement is in place. Where a garnishment is already active, we usually address the release first and the plan alongside it.
What's the smallest payment the IRS will accept?
It depends on your documented income and allowable expenses, not on a minimum figure. Where the plan won't pay the balance in full before the collection period expires, a partial-pay agreement may be possible — which means some of the balance may go uncollected.
Can I set one up myself?
For a modest balance with no complications, yes — the IRS has an online option and it's a fine choice. Representation earns its keep on larger balances, on financial-disclosure plans where the monthly number is negotiable, and when there's a garnishment or levy to unwind at the same time.
What if my situation changes?
Agreements can be renegotiated when your circumstances change materially. Telling the IRS before you miss a payment is far better than defaulting and restarting.
Find out where you actually stand.
We'll pull your transcripts, tell you what's realistic, and give you a straight answer about whether this is the right path for you.