Tax relief/Installment agreements
An IRS payment plan built around your budget, not theirs.
Most people who owe the IRS qualify for a payment plan. The real questions are which kind, and at what monthly amount. A California licensed CPA structures the agreement, keeps levies off while it is in place, and makes sure it holds. Fixed fee, agreed before the work begins.
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CaliforniaLicensed CPA
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The payment plans the IRS offers
The IRS has several kinds of payment arrangement, and the rules for each depend mostly on how much you owe. The right one can mean a lower monthly payment, less paperwork, and no tax lien. The wrong one can mean a payment you cannot sustain.
Short term extensions
If you can pay the full balance within 180 days, the IRS will generally give you the time with no setup fee. Interest and penalties continue until the balance is paid.
Guaranteed agreements
If you owe $10,000 or less in tax, can pay it within three years, and have filed and paid on time for the past five years, the law requires the IRS to accept your payment plan.
Streamlined agreements
Individuals who owe $50,000 or less in combined tax, penalties and interest can generally pay over as long as 72 months without submitting a detailed financial statement.
Agreements above $50,000
Larger balances require full financial disclosure. The IRS measures your income against its Collection Financial Standards to decide what you can pay each month. This is where representation matters most, because the monthly figure is negotiated, not simply assigned.
Partial payment agreements
When your ability to pay will not clear the balance before the ten year collection period ends, the IRS can accept smaller monthly payments that run until it does. Whatever remains unpaid at that point expires.
Currently not collectible
If paying anything would leave you unable to meet basic living expenses, the IRS can suspend collection altogether and review your finances periodically.
What a payment plan does for you
An installment agreement is more than a schedule of payments. Once it is in place, the IRS has to change how it treats your account.
Levies stop
The IRS generally may not levy your wages or bank accounts while an installment agreement request is pending or while an agreement is in effect.
The penalty drops
For individuals who filed on time, the monthly failure to pay penalty is cut in half, from 0.5 percent to 0.25 percent, for as long as the agreement is in place.
Liens can come off
For balances of $25,000 or less, converting to a direct debit agreement and making a few consecutive payments can support withdrawal of a federal tax lien that has already been filed.
Why payment plans fail
Agreements default for predictable reasons. We build yours to avoid every one of them.
A payment set too high
Collectors are trained to start high. Agreeing to more than your budget can carry, just to end the call, is the most common reason agreements default and enforcement resumes.
A new balance
An agreement covers past years only. Owing on next year’s return, usually because withholding or estimated payments were never adjusted, can put the entire agreement in default. We fix the cause, not only the balance.
A late return
Every return due while the agreement runs must be filed on time. One missed filing can end it.
Penalties nobody questioned
Many balances include penalties that qualify for removal. Setting a payment before asking for abatement means paying off money you may not owe.
How Kim Accounting & Advisory handles it
One CPA works your case from the first call to the final resolution. Here is what that looks like for installment agreements.
- 1
Confirm the balance
We pull your transcripts to verify every assessment, confirm the collection expiration date for each year, and look for penalties that should be removed before a payment is set.
- 2
Set the right number
We build your financial picture the way the IRS will measure it, then identify the agreement type and monthly payment that fit your budget and keep your total cost as low as possible.
- 3
Negotiate and protect
We request the agreement and deal with the IRS directly on your behalf, then adjust your withholding or estimates so a new balance does not undo the plan.
Already been quoted a payment by the IRS?Bring the figure to a short call. We will tell you whether it is the right number.
Find out where you standCommon questions
Straight answers to what people ask us most about installment agreements.
Can I set up a payment plan online myself?
If your balance qualifies for a streamlined agreement and you are confident the payment is right, often yes. Representation earns its fee when the balance is larger, when a revenue officer is involved, when the payment the IRS proposes is more than you can carry, or when penalty relief or a lower cost option should come first.
Does interest stop during an installment agreement?
No. Interest and a reduced failure to pay penalty continue until the balance is paid in full, which is why the length and structure of the plan matter.
Will a payment plan lead to a tax lien?
It can, particularly on larger balances. The IRS generally does not file a lien when the balance is under $10,000, and agreements within streamlined limits carry less risk. Where a lien is already filed, a direct debit agreement on a balance of $25,000 or less can support its withdrawal.
What happens if I miss a payment?
Contact the IRS, or have us do it, before a default notice turns into a levy. Agreements can often be reinstated or revised when your circumstances change.
What clients say
“I’d like to start by expressing my appreciation for Jason’s patience and thoroughness. My situation was quite complicated, but he guided me through every step of the process with clarity and care! What stood out most was his willingness to offer thoughtful advice, and if he didn’t have an immediate answer, he took the time to research and ensure he provided the best possible guidance. He consistently went above and beyond to assist me, and I highly recommend his services!”
Anibal Ruelas
Verified by Trustindex. Every review above is reproduced word for word.
Often part of the same problem
IRS problems rarely arrive one at a time. These are the issues that most often come up alongside a payment plan.
Get a payment plan that holds
At Kim Accounting & Advisory, a payment plan is built from your numbers, not a collector’s opening figure. Jason Kim verifies the balance, sets a payment you can sustain and negotiates it with the IRS himself, for a fixed fee agreed before the work begins.
- Learn which payment plans you qualify for
- Find out what your monthly payment should be
- Leave knowing the full cost before you commit
Free consultation
One conversation with a licensed CPA. No obligation and no pressure. If we are not the right fit, you will still leave with a clear next step.
Find out where you standServing clients nationwide, fully virtual.