Farmington – October 19, 2026 -- Taxpayers who can't pay their IRS bill in full can choose between a short-term plan of up to 180 days with no setup fee and a long-term installment agreement of generally up to 72 months. A recent HelloNation article draws on insights from Thomas Stamper, a Tax Resolution Expert with Alpha Omega Accounting PC in Farmington, New Mexico.
A short-term plan gives you up to 180 days at no setup cost
The simplest option is the short-term payment plan. According to the article, it works well when a shortfall is temporary, such as when a bonus, a home sale, or seasonal income could cover the balance within six months.
Installment agreements stretch payments to as long as 72 months
When six months is not enough, the long-term option is an installment agreement. Most people who owe $50,000 or less in combined tax, penalties, and interest can apply online, provided all required returns are filed.
Taxpayers can request a plan online, by phone, or by mailing Form 9465. Online requests for qualifying balances are usually the fastest and least costly route. For qualifying balances, people can often pick their own monthly amount and due date, as long as the balance is paid off within the allowed term.
Smaller debts get extra protection under federal law. Individuals who owe $10,000 or less in tax are generally guaranteed an agreement if they can pay within three years and meet certain filing rules.
Installment agreements carry a setup fee. The amount depends on how a person applies and whether they choose automatic bank withdrawals. Lower-income taxpayers may qualify for a reduced or waived fee.
Interest keeps building while you pay
The article tackles a common belief that a payment plan freezes the balance. It does not: interest keeps accruing on the unpaid amount until the debt is paid in full.
The failure-to-pay penalty continues as well, though it may shrink. For on-time filers, the monthly penalty generally drops from half a percent to a quarter percent during an approved plan.
Missing a payment or a new tax bill can put the plan in default
To stay in good standing, taxpayers must keep filing on time and pay new tax bills as they come due. Falling behind on a payment or on a new year's taxes can put the agreement in default.
One protection applies while a request is under review and while an approved plan stays in effect: the IRS generally will not levy wages or bank accounts.
Other programs exist for those who can't afford the lowest payment
The article outlines three alternatives, each with strict rules: a partial payment installment agreement, an offer in compromise, and currently not collectible status.
Its closing advice is to weigh the full cost of a plan rather than only the monthly payment. A longer agreement may feel easier today, but it usually means paying more interest over time.