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Installment Agreement
Set up manageable monthly payment plans to pay off your tax debt over time.
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Call (877) 829-5267Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court
The Truth About Installment Agreement — And What To Do Right Now
If you can't pay your tax debt in full, an IRS Installment Agreement lets you pay it off in manageable monthly payments. But not all payment plans are created equal — the wrong agreement can cost you thousands in unnecessary interest and penalties.
McCauley Law Offices negotiates the most favorable installment terms possible, including partial-pay agreements where you may never pay the full balance before the collection statute expires.
What Is an IRS Installment Agreement?
An installment agreement under IRC § 6159 is a formal arrangement with the IRS to pay your tax debt in monthly installments. It's the most common form of IRS payment plan and is available to most taxpayers who owe taxes.
Once an installment agreement is in place, the IRS generally will not pursue additional collection actions — no levies, no garnishments, no seizures — as long as you stay current on your payments and remain in compliance with all filing requirements.
Types of IRS Installment Agreements
Not all installment agreements are the same. The type you qualify for depends on how much you owe and your ability to pay:
Guaranteed Installment Agreement
If you owe $10,000 or less and haven't had an installment agreement in the past 5 years, the IRS must approve your request. You don't need to provide financial documentation, and the monthly payment simply divides your balance over 36 months.
Streamlined Installment Agreement
For debts under $50,000, the IRS offers streamlined processing — no detailed financial statement required. You can set up payments over up to 72 months. Under the IRS Fresh Start Initiative, this threshold was increased from $25,000, making it accessible to more taxpayers.
Non-Streamlined Installment Agreement
For debts exceeding $50,000, you'll need to submit a Collection Information Statement (Form 433-F or Form 433-A) detailing your income, expenses, and assets. The IRS uses this to determine what you can afford to pay monthly. This is where having a tax attorney makes the biggest difference — we ensure your expenses are properly documented and your payment amount is based on what you can actually afford. Once terms are agreed, the IRS sends Form 433-D (Installment Agreement) as the signature page locking in your monthly amount and direct-debit authorization — read our Form 433-D guide before you sign.
Partial-Pay Installment Agreement (PPIA)
This is one of the most underutilized tools in tax resolution. A PPIA sets your monthly payment at an amount lower than what's needed to pay the full balance before the 10-year collection statute expires. In effect, the remaining balance is written off when the statute expires. We've saved clients tens of thousands of dollars through strategic PPIA negotiations.
What Happens If I Default on My Installment Agreement?
If you miss a payment or fail to file required tax returns, the IRS will send a CP523 notice giving you 30 days to cure the default. If you don't respond, the IRS terminates your agreement and can resume full collection activity — levies, garnishments, and liens. If you receive a CP523, contact us immediately. We can often reinstate your agreement or negotiate a modified plan.
Interest and Penalties During an Installment Agreement
Interest continues to accrue on your remaining balance during an installment agreement, and the failure-to-pay penalty also continues — though at a reduced rate of 0.25% per month (down from 0.5%). This is why we also pursue penalty abatement alongside installment agreements when possible, potentially saving you thousands in additional charges.
People Just Like You Have Sat In This Exact Chair
They were terrified. They were ashamed. They thought they were the only one. Then they made one phone call — and everything changed.
Medical Professional with High Tax Debt
A Baltimore physician owed $310,000. We negotiated a partial-pay installment agreement at $3,100/month — and because the collection statute will expire before the balance is paid, he'll save over $150,000.
Dual-Income Family Facing Garnishment
A couple in King of Prussia was about to have wages garnished for $58,000 in back taxes. We stopped the garnishment and set up a streamlined installment agreement of $650/month.
Small Business Owner Behind on Payroll Taxes
A Haddonfield business owner owed $125,000 in combined payroll and income taxes. We negotiated a non-streamlined installment agreement with payments based on actual disposable income — $1,200/month instead of the $3,400 the IRS initially demanded.
That Letter In Your Hand? Here's What It Really Means.
The IRS writes notices in code on purpose. If any of these landed in your mailbox, installment agreement is exactly how we fight back — and the clock is already ticking.
This is the IRS's first notice telling you that you owe taxes. It shows the amount due, including any penalties and interest.
Deadline: 21 days
A reminder that you have a balance due. This is a follow-up to the initial CP14 notice.
Deadline: 21 days
This is the second reminder that you owe taxes. The IRS is escalating their collection efforts.
Deadline: Immediate
The IRS is about to terminate your installment agreement because you missed payments or didn't file required returns.
Deadline: 30 days
This is a final notice before the IRS seizes your assets. They intend to levy (take) your state tax refund and may seize other assets.
Deadline: 30 days
The IRS has certified your seriously delinquent tax debt to the State Department. Your passport may be denied or revoked.
Deadline: N/A
Notice CP49 tells you the IRS used all or part of your tax refund to pay an old federal tax debt. If anything is left, you'll get it; if you still owe, the notice shows the remaining balance.
Deadline: 60 days to dispute
CP71C is an annual statement that you still owe back taxes and warns that the debt may be certified as 'seriously delinquent' — which can lead to passport denial or revocation by the State Department.
Deadline: No fixed deadline (passport risk is ongoing)
Every Day You Wait, The IRS Wins A Little More.
Penalties stack. Interest compounds. Legal options quietly disappear. One free call ends the spiral.
Exactly How We Take This Off Your Shoulders
The hardest step is the first one. Everything after that, we carry for you. No surprises. No runaround. No lectures.
- 1
Review your balance & income
We pull your IRS transcripts and assess your total liability, income, expenses, and assets to determine the best payment structure.
- 2
Determine the right agreement type
Guaranteed, streamlined, partial-pay, or non-streamlined — we match you with the plan that minimizes your monthly payment and total cost.
- 3
File your request
We prepare Form 9465 or 433-F and submit your installment agreement request, including penalty reduction when possible. Once the IRS agrees to terms, you'll receive Form 433-D — see our Form 433-D guide for the exact mailing address and direct-debit traps to avoid.
- 4
Stop collection actions
Once your agreement is in place, levies, liens, and garnishments are paused or released.
- 5
Ongoing compliance monitoring
We make sure you stay in compliance with the agreement terms to avoid default and keep your protections in place.
Trusted by Thousands of Taxpayers
Real results from real clients
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."
Robert M.
Philadelphia, PA
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The Questions Keeping You Up At Night — Answered
The Paperwork Behind Installment Agreement
Step-by-step guides — including who files, mailing addresses, and the mistakes that get applications rejected.
Other Ways We Shut The IRS Down
Offer in Compromise
Settle your tax debt for less than what you owe through IRS settlement programs.
Currently Not Collectible
Prove financial hardship to temporarily halt IRS collection activity.
Penalty Abatement
Remove or reduce IRS penalties through first-time abatement or reasonable cause.
Innocent Spouse Relief
Relief from joint tax liability caused by your spouse's errors or fraud.
One Phone Call. Or Another Sleepless Night.
Stop Letting The IRS Own Your Mornings.
You already know what happens if you do nothing. Pick up the phone for a free, confidential conversation with a real tax attorney — 30+ years inside the IRS playbook — and finally start fighting back.
Call (877) 829-5267 NowPrimary Sources & Authority
We cite the underlying IRS publications and statutes so you can verify everything on this page.