Playbook
IRS installment agreements from the practitioner’s side
Short answer
The IRS offers short-term plans (paid within 180 days, no setup fee) and long-term installment agreements. Individuals owing $50,000 or less with all returns filed can apply online; online direct-debit setup is $29. Practitioners add the most value above online thresholds, where full financial disclosure on Form 433-F or 433-A is required.
By the BestTaxSoftware.com editorial team. Updated . Prices checked on vendor sites that day.
What are the current setup fees?
| Method | Direct debit | Other payment |
|---|---|---|
| Apply online | $29 | $69 |
| Phone, mail, or in person | $107 | $178 |
| Low-income taxpayer | Waived | $43, may be reimbursed |
When does a client need a practitioner?
- Balance above $50,000, or unfiled returns that must be filed first
- The client cannot afford the minimum payment the online tool requires
- A prior agreement defaulted and needs reinstating
- Payroll tax balances for a business
What does a pending request do to collection?
While a request is pending the IRS is generally prohibited from levying, and the collection statute is suspended. If the request is rejected, the suspension continues for 30 days, and longer during an appeal.
Questions practitioners ask
- Do penalties stop during an installment agreement?
- No. Penalties and interest accrue until the balance is paid, though the failure-to-pay rate is reduced during an agreement for timely filed returns.
- Can a client have an IA and request penalty relief?
- Yes. Penalty relief is a separate request and can reduce the balance being paid.