Pay Overdue IRS Taxes with an Installment Agreement

Pay overdue IRS taxes before it gets overwhelming. Attorney Robert Schaller can explain the options available to help you resolve your unpaid tax debt. One such option is setting up an IRS installment agreement payment plan. As a tax attorney, I concentrate in assisting individuals like you in navigating the complexities of tax debt. In this blog post, we will explore the process, requirements, and benefits of an installment agreement payment plan to help you effectively repay your IRS back taxes.

Your Right to Pay Overdue IRS Taxes

A payment plan, also known as an IRS installment agreement, allows you to pay your overdue taxes over time in manageable monthly installments. It provides an alternative to paying the full amount upfront, offering relief by spreading the financial burden over an extended period. Both the IRS and state tax authorities have provisions in place to accommodate taxpayers seeking to set up these agreements.

Setting Up an IRS Installment Agreement

Before setting up a payment plan, you must assess your eligibility. Generally, you must be current with your tax filings and have filed all required returns. If you have outstanding tax returns, it’s essential to file them before initiating the payment plan process. Additionally, you should ensure that you have accurate records of your income, expenses, and assets to facilitate the negotiation process.

The better option is to have your tax attorney contact the IRS on your behalf. Installment agreements are initiated by contacting the appropriate tax authority. Be prepared to provide information about your tax debt, financial situation, and proposed payment terms. Working with a tax attorney can help ensure that you present your case effectively and navigate any challenges that may arise.

Choose the Right Type of Plan to Pay Overdue IRS Taxes

IRS installment agreements come in various forms, depending on your financial circumstances and the amount of tax debt owed. The most common types include:

Guaranteed Installment Agreement

If your total tax debt is $10,000 or less, you may qualify for a guaranteed installment agreement. This type of agreement generally does not require financial disclosure and can be set up easily.

Streamlined Installment Agreement

For tax debts between $10,000 and $50,000, an IRS streamlined installment agreement is an option. This agreement allows for an extended repayment period and requires limited financial documentation.

Partial Payment Installment Agreement (PPIA)

If you are unable to pay the full amount owed, you may qualify for a PPIA. This agreement allows you to make reduced monthly payments based on your financial capacity.

Non-Streamlined Installment Agreement

For larger tax debts or complex financial situations, a non-streamlined installment agreement may be necessary. This agreement involves providing detailed financial information for review and negotiation.

Your Attorney Should Negotiate Terms and Make Payments

Once your attorney has initiated the process and chosen the appropriate type of agreement, you will need to negotiate the terms with the tax authority. This includes determining the monthly payment amount, the duration of the agreement, and any associated fees or penalties. It’s essential to consider your financial capabilities and propose a payment plan that is realistic and sustainable. Once the agreement is in place, make timely monthly payments to fulfill your tax debt obligations.

Benefits of Paying Overdue Tax with an IRS Installment Agreement

Setting up a payment plan or installment agreement offers several benefits, including:

Repayment Flexibility

Payment plans allow you to repay your tax debt in manageable monthly installments based on your financial capacity, relieving the burden of paying the full amount upfront.

Avoiding Harsher Collection Actions

By entering into a payment plan, you can avoid more aggressive collection actions such as wage garnishment, bank levies, or property liens.

Reduced Penalties and Interest

While penalties and interest may continue to accrue during the payment plan period, they are typically reduced compared to the penalties and interest associated with unpaid taxes.

Improved Creditworthiness

Fulfilling your payment plan obligations can have a positive impact on your creditworthiness, helping you rebuild your financial reputation.


If you’re facing back taxes, setting up a payment plan or installment agreement can be an effective strategy to repay your tax debt. By assessing your eligibility, contacting the IRS or state tax authorities, choosing the right type of agreement, and negotiating suitable terms, you can regain control of your finances and work towards resolving your tax liabilities.

Remember, seeking professional guidance from an experienced Illinois tax attorney is invaluable throughout this process. They can provide expert advice, ensure your rights are protected, and help you navigate any complexities that may arise.

Don’t let IRS back taxes burden you any longer. Take action today and explore the option of a payment plan or installment agreement to effectively repay your tax debt. Contact attorney Robert Schaller to discuss your case and embark on the path to financial stability.