How to Set Up a Payment Plan With the IRS (Step-by-Step)
If you owe the IRS and can’t pay in full, you’re not out of options. The IRS offers Installment Agreements—payment plans that allow you to pay down your tax debt over time without wrecking your business cash flow.
What Is an Installment Agreement?
An arrangement where the IRS allows you to pay monthly instead of all at once. There are multiple types, depending on how much you owe and how quickly you can repay it.
Step-by-Step to Set One Up
File All Outstanding Returns – You must be current before the IRS will talk payment plans.
Determine How Much You Owe – Use IRS transcripts or get help calculating it.
Pick a Payment Plan Type
Streamlined (under $50K)
Non-streamlined (over $50K)
Partial Pay (based on ability to pay)
Apply Online or by Mail using Form 9465 or IRS.gov’s Online Payment Agreement Tool
Monitor Your Account Monthly – Missing a payment can void the deal
What to Watch Out For
The IRS will charge interest and some penalties during repayment
You must stay compliant moving forward—file and pay on time
You may need to provide financials if you owe over $50K
Call to Action
Need help choosing or applying for the right plan? Let’s review your IRS transcript and build your paydown strategy—book a consult today.
