IRS Payment Plan

According to the American Psychological Association (APA), 76% of Americans consider finances to be a major cause of stress.1 Constantly stressing over money can impede one’s physical and mental health, work-life, and relationships with family and friends. Of course, an outstanding balance with the State or Internal Revenue Service (IRS) only adds more to your financial woes. Negotiating your tax liability with the IRS can be extremely aggravating and difficult, leaving you with feelings of despair.

Do not spend another minute frustrated! There are tax professionals who specialize in negotiating with the IRS to come up with a solution. Also known as an IRS Installment Agreement, a payment plan is a great solution since it allows you to file back taxes with the State or Federal government over an extended period until your balance is paid in full. At, our experienced Los Angeles tax lawyers work tirelessly to negotiate a feasible IRS payment plan with the IRS or State based on your needs, helping you avoid aggressively enforced collection activity.

How Do I Set Up A Payment Plan with the IRS?

Although the best way to settle your balance with the IRS is to pay it in full, this is not always an option for everyone with tax liability. Those who do not have immediate cash in-hand will look to other avenues of paying off their tax balance, such as refinancing their home, using credit, applying for an equity loan, or asking for help from family and friends. However, on the bright side, there are several options available to you if you are not able to make a full payment.

Our tax professionals in Southern California at will have you fill out an IRS Form 9465 and advise one of five types of IRS installment agreements that is suitable for you. On your behalf, we then negotiate with the IRS the amount you would pay every month until your balance is cleared. You must adhere to the agreement with the IRS by making on-time monthly payments and being more vigilant in paying your taxes on time in the future. 

How Long Can You Do A Payment Plan with the IRS?

Once you have filled out and submitted Form 9465, our tax attorneys will work with the IRS to set up a payment plan for you, which can last six years. A setup fee – ranging from $31 to $225 – will be required and you can drastically decrease the fee if you arrange to have it debited from your bank account.

How Much Interest Does the IRS Charge on Payment Plans?

We strongly advise filing taxes immediately as the IRS surcharges a monthly penalty interest rate of 0.5-5%. The IRS usually charges a late payment penalty of 0.5% in interest of the total balance each month. For those who never filed, the IRS late filing penalty surges to 5% of the unpaid taxes due for each month. 25% is the maximum for penalties on unpaid and unfiled taxes.

Do IRS Payment Plans Affect Your Credit?

Luckily, despite the penalties and interests, adhering to an IRS payment plan will not affect your credit score. The IRS recognizes consumer needs; therefore, payment plans are not reported to credit bureaus.

Work with Our Team for The Right Installment Agreement

With years of combined experience under our belt, we have the legal knowledge to guide you in the right direction of clearing your back taxes. From the initial payment plan request to the final payment, our tax professionals are with you every step of the way. Get started on setting up an IRS payment plan by contacting our highly experienced team of tax attorneys in Los Angeles at 1-800-290-8160 today!

Read Also:


  1. American Psychological Association – Managing your stress in tough economic times