Updated November 2026 · VG CPA PC advisors
Short-term plans and guaranteed agreements
If you can pay within 180 days, a short-term payment plan has no setup fee, though interest and penalties continue. Individuals who owe $10,000 or less in tax and can pay within three years qualify for a guaranteed installment agreement if they have filed and paid on time in the prior five years.
These options can usually be set up online or by phone in minutes.
Streamlined and in-business agreements
Individuals who owe $50,000 or less in combined tax, penalties and interest can get a streamlined agreement of up to 72 months without providing financial statements. Businesses that owe $25,000 or less can use an in-business trust fund express agreement, generally paid within 24 months.
Larger balances need a non-streamlined agreement with a financial statement (Form 433-F or 433-A), and the IRS may file a federal tax lien. Paying the balance down below a threshold before applying can simplify the process.
Partial-payment agreements and staying current
If you cannot pay the full balance before the collection statute expires, a partial-payment installment agreement sets payments based on your ability to pay, with periodic financial reviews. Any balance left when the statute expires is written off.
Agreements default if you miss payments or fail to file and pay future taxes. Direct debit payments reduce fees and default risk. If your situation changes, contact the IRS before missing a payment to revise the plan.