Can a Lawyer Help With an IRS Payment Plan?

If you owe back taxes to the IRS, you may be able to pay off your balance over time with an IRS payment plan. Learn more here.

How to Set Up a Payment Plan With the IRS

If you owe taxes, the worst thing you can do is ignore it. The IRS can assess penalties for either failing to file a tax return or failing to pay taxes by the deadline.

It’s always best to file taxes timely, even if you can’t pay the balance in full, and pay as soon as you can to avoid or minimize additional penalties. But, if paying the tax debt in full is impossible, you can try to establish a payment plan with the IRS.


What Is an IRS Payment Plan?

A payment plan is an agreement between the taxpayer who owes taxes and the IRS. The agreement entails paying the taxes the taxpayer owes within an extended time frame. If you believe you will be able to pay your taxes in full within the suggested time frame, then you may request a payment plan.

How Can a Lawyer Help?

A lawyer can help you to evaluate your options for paying back taxes. A lawyer can analyze the facts of your case and set up a proposal for you. They will also represent you during negotiations with the IRS if necessary.

A tax attorney is an attorney who specializes in helping people resolve their tax-related matters. Tax attorneys are often skilled in both tax law and litigation, which makes them essential when it comes time to establish an IRS payment plan or file an appeal against a property seizure order.

If you owe the IRS money and you’re not sure how to get back on track, read on.


If you have fallen behind on your tax payments, the IRS has a variety of payment options that may be helpful to your situation. When it comes to tax season, this may be more than just a matter of calculating what you owe and sending in a check.

The Internal Revenue Service (IRS) offers several ways for taxpayers to pay their annual income tax liability, including a full payment, short-term payment plan, as well as setting up an installment agreement and offering a partial payment. A taxpayer with an installment agreement will make monthly payments until the full amount is paid off. 

Different Types of Installment Plans

Your specific tax situation will play a significant role in determining which payment option is available to you.

For example, those who want to qualify for a short-term payment plan must owe less than $100,000 in combined tax, penalties, and interest. They have to pay their outstanding balance within 120 days or less. Individuals can also apply for an extended short-term payment plan and pay off their debt within 180 days.

To qualify for a long-term payment plan, a taxpayer can’t owe more than $50,000 in combined tax, penalties, and interest. However, in this case, the taxpayer is aware they will need more time than 120 days, and it is typically paid in monthly payments. If the IRS approves the plan, a setup fee may apply.

Also, bear in mind that neither of these payment plans will get you out of penalties and interest for late payments.

How Do IRS Tax Payment Plans Work?

The Internal Revenue Service offers a number of different ways that you can pay your back taxes to them.

With the Taxpayer Choice Program, you can set up a monthly direct debit or add it to your bank account automatically so that each month when your bill is due, the IRS will automatically deduct the amount from your checking or savings account.

If you want to pay in full at any time during the year, you can do so using direct debit or by sending in a check. 

How Much Interest Does IRS Charge for Payment Plan?

The IRS charges a small fee for the setup of payment plans. An interest rate will also apply.

The IRS interest rates differ depending on the amount owed and the length of the plan selected. If you can afford to pay off your tax debt in under 12 months, then it is best to do so. Your attorney can help you determine the ideal IRS payment plan for your situation.