IRS Payment Plans: What All Florida Taxpayers Need to Know

Large federal tax debts can happen for a variety of reasons. Trying to work with the Internal Revenue Service (IRS) to resolve the issue can be overwhelming, especially if you do not have the funds to pay the total amount owed. Fortunately, the IRS payment plans allow taxpayers to settle their tax debts over time but choosing the right option is critical, as interest and penalties can continue to add up.

If you owe the IRS and need a manageable way to pay, Florida tax-IRS attorney Ronald Cutler explains what you need to know about installment agreements, how they work, and common pitfalls.

IRS Payment Plan Options To Help Florida Residents Resolve Tax Debts

According to a 2025 CNBC News report, over 25 percent of Americans are expected to owe money when filing their federal tax returns this year. Dealing with tax debts is overwhelming, but fortunately, the IRS provides payment plan options for Florida taxpayers who cannot pay the total amount owed. These payment plans include:

• Short-Term Payment Plans: Available for balances under $100,000, this plan requires full payment within 180 days.
• Long-Term Installment Agreement: For taxpayers who owe less than $50,000, structured monthly payments can span several years.
• Partial Payment Installment Agreement (PPIA): This is a lower monthly payment plan for taxpayers who qualify based on financial hardship.
• Offer in Compromise (OIC): This is a potential option for those who can demonstrate an inability to pay the full amount, allowing them to settle for less.

Taxpayers must apply for an installment agreement using Form 9465, or you can apply online through the IRS website. In some cases, the IRS may require financial disclosures before approving a plan. IRS Publication 594 explains more about the requirements, your rights, and obligations.

Pros and Cons of Paying Off Tax Debts Through An IRS Installment Agreement

Not enough withholding, changes in deductions, failing to file a tax return, and dealing with self-employment income are among the common reasons for tax debts. Payment plans can help, but be aware of pros and cons:

• Pros: Payment plans offer a predictable payment structure, prevent collection actions such as wage garnishment or tax liens, and may reduce penalties.
• Cons: Some plans require extensive financial disclosures and allow interest and penalties to continue accruing. If you fail to make required payments, it can result in tax levies or other IRS enforcement efforts.

Need Help With an IRS Payment Plan? Contact Our Experienced Florida Tax Attorney

An IRS payment plan can provide much-needed relief, but it is not the only option for dealing with tax debts. Florida tax attorney Ronald Cutler, a CPA and former FBI special agent in tax cases, has over 50 years of experience helping clients manage tax debt and negotiating with the IRS. If you are considering an IRS payment plan, we can explain more about your options and help you avoid costly mistakes. Call or contact us online today to schedule a consultation.

Sources:

cnbc.com/select/how-to-avoid-debt-to-pay-taxes/

irs.gov/pub/irs-pdf/p594.pdf