IRS Payment Plans: A Practical Path to Tax Debt Relief

If you can’t afford to pay your entire tax debt upfront—and don’t qualify for an Offer in Compromise—an IRS Payment Plan (also known as an Installment Agreement) may be your best option for resolving your tax liabilities.

At PSA CPA, we help taxpayers like you regain control by negotiating affordable payment arrangements with the IRS—so you can breathe easier and avoid aggressive collection actions.

What Is an IRS Payment Plan?

An IRS Payment Plan allows you to pay off your tax debt over time through monthly payments. It’s a formal agreement between you and the IRS and can prevent further enforcement actions, such as:

• Wage garnishments

• Bank levies

• Federal tax liens

As long as you stay current with your monthly payments and file future tax returns on time, the IRS typically suspends further collection activity.

Key Benefits of an IRS Payment Plan

• Avoid aggressive IRS collections

• Break down large tax bills into manageable payments

• Remain compliant without draining your finances

• Stop failure-to-file penalties from accumulating

• Demonstrate good-faith effort to resolve your tax issue

Things to Keep in Mind

While a Payment Plan can offer much-needed relief, it’s important to understand the limitations:

• Interest and penalties continue to accrue until the full balance is paid

• You must stay compliant with all future tax filings

• Larger balances may require financial disclosure of your income and assets

• Missing payments can result in default and renewed enforcement

Types of IRS Payment Plans

1. Short-Term Payment Plan

   • For balances that can be paid in full within 180 days

   • No setup fee

2. Long-Term Installment Agreement

   • For larger debts requiring 6 months or more to repay

   • Can span up to 72 months or longer (depending on the amount owed)

   • Setup fees may apply

   • May require financial documentation or direct debit enrollment

3. Partial Payment Installment Agreement (PPIA)

   • For taxpayers unable to pay the full debt over time

   • Monthly payments based on ability to pay

   • May result in partial forgiveness if the statute of limitations expires

Why Work with PSA CPA?

Navigating the IRS system on your own can be stressful and confusing. At PSA CPA, we guide you every step of the way to:

Determine your eligibility for different payment options
 Negotiate with the IRS to reduce your monthly burden
 Help stop levies, garnishments, and liens
 Keep you compliant to avoid default

We work directly with the IRS so you don’t have to.

Take the First Step Toward Peace of Mind

If you’re overwhelmed by tax debt and unsure how to manage it, a personalized IRS Payment Plan may be the solution. Let PSA CPA help you regain your financial footing and move forward with confidence.

Contact us today for a confidential consultation.