Types of IRS Installment Agreements
| Type | Max Debt | Financial Disclosure | Min Payment | Apply Online? |
|---|---|---|---|---|
| Guaranteed | $10,000 or less | Not required | Calculated | Yes |
| Streamlined | $50,000 or less | Not required | Balance/72 months | Yes |
| Non-Streamlined | >$50,000 | Required (Form 433-A/F) | IRS-determined | No — by phone/mail |
| Partial Pay Installment | Any amount | Required | What you can afford | No |
| Direct Debit (DDIA) | Any | Varies | Varies | Yes (if <$50K) |
Go to IRS.gov → Pay → Set Up an Installment Agreement → Online Payment Agreement tool. You'll need your Social Security Number, tax year(s), and balance. Choose a monthly amount (minimum is balance divided by 72 months). Payment can be by direct debit (DDIA, $31 fee) or check/money order ($130 fee). Low-income applicants may qualify for waived setup fees.
Interest: accrues at the federal short-term rate plus 3% (currently ~8% annually). Failure-to-pay penalty: reduced from 0.5% to 0.25% per month while in an IA. Federal tax lien: the IRS may still file a federal tax lien for debts over $10,000, even with an IA — this affects your credit and property titles. Collection actions: halted as long as you make payments. IRS may revisit your agreement annually.
Frequently Asked Questions
Yes — you can request to modify your payment amount by calling the IRS (1-800-829-1040) or logging into your IRS Online Account. If your financial situation has worsened, you may qualify for a lower payment under a Partial Pay Installment Agreement. If it's improved, the IRS may request a higher payment at annual review.
Your agreement may default if you miss a payment or fail to stay current on new tax obligations. The IRS sends a CP523 notice giving you 30 days before default. To reinstate, call the IRS before the 30-day window. After default, the IRS can reinstate collection actions including levies and garnishments. Two defaults typically make it harder to get future agreements.