Types of IRS Installment Agreements
The IRS offers several payment plan options based on how much you owe and your ability to pay.
- Guaranteed: Owe $10,000 or less, must pay within 3 years
- Streamlined: Owe $50,000 or less, up to 72-month terms
- Partial Pay: Pay what you can afford, debt may not be fully paid
- Non-Streamlined: Over $50,000, requires financial disclosure
How to Apply
Apply online at IRS.gov for balances under $50,000, call the IRS directly, or submit Form 9465 by mail. Online applications are processed fastest, often within 24 hours.
Costs and Fees
Setup fees range from $31 (low-income online Direct Debit) to $225 (phone/mail applications). Interest and penalties continue to accrue on the unpaid balance. Direct Debit agreements have the lowest fees and may qualify for lien withdrawal.
What Happens to the Tax Lien?
A lien may still be filed or remain in place during an installment agreement. However, Direct Debit Installment Agreements may qualify for lien withdrawal after three consecutive payments.
Frequently Asked Questions
The minimum payment depends on your balance and the agreement type. For streamlined agreements, the IRS calculates payments to pay off the debt within 72 months. You can request lower payments with a Partial Pay Installment Agreement.
Yes. Having a lien doesn't prevent you from setting up an installment agreement. A Direct Debit Installment Agreement may even qualify you for lien withdrawal after three on-time payments.
Missing payments can result in default and termination of your agreement. The IRS typically sends notices before termination and may reinstate the agreement if you catch up on missed payments.
Yes, you can pay off your installment agreement early at any time without penalty. This saves on interest and penalties that continue accruing during the payment plan.
Yes. Once an installment agreement is approved, the IRS will generally stop or release wage garnishments (levies). You should continue making agreement payments as scheduled.