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Settle tax debt with an IRS payment plan lawyer on your side.
Find Out If You Qualify for Installment Payments in Four Easy Steps!
Check Your Eligibility For an IRS Payment Plan Today!
An IRS payment plan, also known as an IRS Installment Agreement, enables taxpayers to settle their tax debts through structured, manageable monthly payments.
When you owe taxes and can’t pay in full, one of the most common options for paying IRS debt is through an installment plan. By setting up an installment plan with the IRS, you can make manageable monthly payments instead of facing aggressive collection actions. The IRS offers both short-term and long-term installment payments for IRS, but the rules for eligibility are strict and the costs can add up, especially with IRS interest rates for payment plans and penalties continuing to accrue.
To set up a payment plan with the IRS, you’ll typically need to:
When you owe the IRS, the repayment path you choose can determine whether your finances stabilize or spiral further out of control, which is why our installment plan lawyers use their knowledge of eligibility rules and repayment options to put you in the strongest position possible. For debts under $10,000 we can secure a Guaranteed Installment Agreement that is required by law if compliance conditions are met. Balances below $50,000 may qualify for the Streamlined Installment Agreement, also called the Fresh Start Initiative, which offers up to six years of affordable payments with limited IRS oversight.
Larger debts up to $100,000 may qualify for the 84-Month Pilot Program, and when full repayment isn’t realistic we pursue a Partial Payment Installment Agreement to reduce the overall burden. Every case starts with a careful review of your debt, income, and compliance history so we can negotiate directly with the IRS and secure a solution that protects your finances and your future.
The Proven 4-Step Method for
Managing IRS Tax Debt
During this phase, we carefully assess your financial situation, including income, expenses, assets, and liabilities.
Our experienced IRS settlement attorneys will work closely with you to identify the most suitable IRS installment agreement option.
Negotiations involve determining a feasible monthly payment plan that allows the taxpayer to settle the debt over several years while managing ongoing financial obligations.
Ongoing monitoring of your plan helps ensure that adjustments are made if your financial situation changes.
During this phase, we carefully assess your financial situation, including income, expenses, assets, and liabilities.
Our experienced IRS settlement attorneys will work closely with you to identify the most suitable IRS installment agreement option.
Negotiations involve determining a feasible monthly payment plan that allows the taxpayer to settle the debt over several years while managing ongoing financial obligations.
Ongoing monitoring of your plan helps ensure that adjustments are made if your financial situation changes.
Our experienced tax debt lawyers ensure your application is complete, accurate, and suited to your financial reality.
Securing the right IRS installment agreement can be complicated, especially when you’re unsure which plan fits your financial situation. At J David Tax Law, our debt settlement attorneys help you navigate this complex process by evaluating your specific circumstances to determine which payment plan—whether short-term, long-term, or partial payment—is best for you. Many applications are rejected due to errors or because the proposed terms don’t align with IRS guidelines.
We not only handle the paperwork but also advocate for terms that make your payments more manageable. If your application is rejected, our IRS installment agreement attorneysWe guide you through the appeals process, improving your chances of approval. Additionally, We monitor your compliance with the plan and help mitigate penalties and interest, offering long-term relief and peace of mind.
When deciding which IRS payment plan is right for you, it’s important to know that many plans provide manageable monthly payments without reducing the total debt owed. Some options, like the Partial Payment Installment Agreement, offer partial debt relief over time, while others, such as the Offer in Compromise, can significantly reduce the amount you owe based on your financial situation. Understanding the benefits and limitations of each plan can help you make the best decision for your circumstances.
The IRS Short-Term Payment Plan offers a simple solution for individuals and businesses to pay off tax debt within 180 days. With no major financial disclosures required,
it provides manageable payments without long-term commitment or debt reduction. This plan is ideal for those seeking quick resolution.
Yes, you can make payment arrangements with the IRS by applying for an installment agreement. This allows you to pay your tax debt over time through manageable monthly payments. Depending on your financial situation, you can apply for a Short-Term Payment Plan or a Long-Term Installment Agreement. At J David Tax Law, we provide to help you understand your options for resolving tax issues. Our Lawyers negotiate with the IRS on your behalf.
The IRS does not set a universal minimum payment amount—it depends on your total tax debt, income, and which program you qualify for. Under a Guaranteed Installment Agreement, balances under $10,000 can often be paid within 36 months, while Streamlined Agreements for debts under $50,000 may be stretched over 72 months. An experienced IRS payment plan attorney can calculate the lowest acceptable payment and negotiate terms that fit your budget while stopping aggressive IRS collections.
Yes, penalties and interest will continue to accumulate on a long-term IRS payment plan until the tax debt is fully paid off. While the installment agreement allows you to pay the debt over time, interest accrues on the unpaid balance at the federal short-term interest rate plus 3%, and penalties are typically charged for late payment. However, penalty abatement may be available in some cases, reducing the burden of penalties. can help you explore ways to minimize these additional costs.
Yes, Form 9465 can be filed electronically. Taxpayers can submit Form 9465 through the IRS website using the Online Payment Agreement tool. If you prefer to file by mail, you can also download and submit the form in paper format. Form 9465 can be filed electronically but It requires detailed financial information and an understanding of IRS eligibility criteria to ensure approval. Errors or missing details could lead to delays, rejection, or even a less favorable payment plan. , allowing you to focus on your financial recovery while we negotiate the best terms for your installment agreement.
The Internal Revenue Service charges interest on unpaid tax balances when you enter into a payment plan. The interest rate is based on the federal short-term interest rate plus 3%, and it compounds daily. This means the interest accrues on your remaining balance until the debt is fully paid off. In addition to interest, the IRS may also apply a late payment penalty, which is typically 0.5% of , up to a maximum of 25% of the total unpaid balance. We can help you explore the best solutions for your tax debt, even if you’re already facing penalties.
Additional Resources
How Far Back Can the IRS Go? Understanding Audit Timelines and Lookback Periods
How Much Does a Tax Attorney Cost in California | Rates, Services, and Factors
Can You Go to Jail for Not Paying Taxes? Know the Risks
Can the IRS Make You Homeless? Learn the Truth
What is considered tax evasion? Red Flags and Penalties You Should Know
What If I Owe $100,000+ in Back Taxes? Your IRS Relief Options
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