Streamlined Installment Agreement
If you owe less than $25k, this is the game plan
If you personally owe less than $25,000 (including penalty and interest) in tax debt, you may qualify to set up a long-term payment plan (known as a streamlined installment agreement) with the IRS without providing detailed information about your financial situation.
Here are the requirements
The following are the requirements the IRS typically uses for streamlined installment agreements:
- Must have filed all required tax returns (usually the past six years).
- You are not currently on an installment agreement with the IRS.
- You are not planning on filing bankruptcy soon.
- You are not in a current bankruptcy.
- You can afford to pay off your tax debt within seventy-two months (six years) or by the Collection Statute Expiration Date (this can be obtained by calling the IRS), whichever comes first.
- If you are required to make estimated tax payments, you must be up-to-date.
- If you are an employee, you must have enough taxes withheld from your paycheck so that you are not likely to owe taxes at the end of the year.
Here’s what you’ll need before you apply
The following information is needed to apply for the payment plan online:
- Name exactly as it appears on your most recently filed tax return.
- Valid e-mail address.
- Address from recently filed tax return.
- Date of birth.
- Filing status.
- Your Social Security Number or Individual Tax ID Number (ITIN).
- To confirm your identity, you will need:
- financial account number or
- mobile phone registered in your name or
- activation code received by postal mail (takes 5 to 10 business days)
- If you previously registered for an Online Payment Agreement, Get Transcript, or any Identity Protection PIN (IP PIN), you should log in with the same user ID and password. You will need to confirm your identity by providing the additional information listed above if you haven’t already done so.
How to apply for a streamlined installment agreement
Instructions can be found below and on the IRS website. You can apply for a streamlined installment agreement by following these steps:
- File all tax returns for the past 6 years.
- Determin the amount you can pay each month. The payment amount must pay the total tax debt within 72 months or by the Collection Statute Expiration Date, whichever comes first.
- You can apply either online or through the mail. To apply online, use the IRS Online Payment Agreement Application. To apply through the mail, use IRS Form 9465.
- There is a fee involved with most IRC installment agreements. The fee can be waived if you are considered by the IRS to be a low-income taxpayer.
- $31 if you apply online and the payments will be directly debited from a bank account.
- $107 if you apply by phone, mail, or in-person and the payments will be directly debited from a bank account.
- $149 if you apply online and the payments will be made using a different non-direct debit method.
- $225 if you apply by phone, mail, or in-person and the payments will be made using a non-direct debit method.