The four installment-agreement options
The IRS distinguishes among several installment types, each with its own eligibility threshold, fee, and documentation requirement. The simplest path is the Online Payment Agreement (OPA); the most flexible is a partial-pay installment agreement (PPIA); the most involved is a non-streamlined installment agreement that requires Form 433-F or Form 433-A financial disclosure.
1. Online Payment Agreement (OPA)
The simplest setup. You apply at irs.gov/payments/online-payment-agreement-application and choose either a short-term (180 days or fewer) or long-term (more than 180 days) plan. Eligibility, dollar thresholds, and setup fees vary year to year and depend on the type of taxpayer (individual vs. business) and the proposed payment method (direct debit vs. other). The OPA page itself shows the current thresholds — verify there before applying.
2. Streamlined installment agreement
Above the OPA threshold but still within IRS streamlined criteria, you can request an installment agreement using Form 9465 without filing financial disclosure (Form 433-F or 433-A). The balance must be repayable within the IRS's collection statute period, which for individual income tax is typically 10 years from the date the tax was assessed.
3. Non-streamlined installment agreement
For balances above the streamlined threshold, the IRS requires a full financial disclosure on Form 433-F or Form 433-A. This is where the IRS evaluates your monthly income, allowable living expenses (per the IRS Collection Financial Standards), and ability to pay. The agreement that comes out of this process is based on your "Reasonable Collection Potential" — roughly, what the IRS thinks you can pay each month after allowable expenses.
4. Partial-pay installment agreement (PPIA)
If, after the financial-disclosure analysis, you can't pay the full balance even over the 10-year collection statute window, you may qualify for a partial-pay installment agreement — you make monthly payments, but the agreement is reviewed every two years, and the unpaid portion is forgiven when the collection statute expires. PPIAs require the same Form 433 financial disclosure and are typically reviewed by an IRS revenue officer.
Fees and direct-debit discount
Setup fees vary by application channel (online vs. paper Form 9465), payment method (direct debit lowers the fee substantially), and taxpayer income (low-income taxpayers may qualify for a fee waiver). Always verify the current fee on the OPA application page or in the most current Form 9465 instructions. Direct debit (auto-pay from a bank account) is the cheapest option and reduces default risk.
What happens if you default
Default — missing a payment, accruing a new balance, or failing to file a future return — typically generates a CP523 notice warning of agreement termination. The detail page for CP523 states a 30-day window to make the past-due payment or re-establish the agreement before termination. Once an agreement is terminated, the full balance is again immediately collectible and IRS collection procedures resume — including potential levy intent under LT11.
Why we don't recommend tax-resolution mills
The IRS's installment-agreement process is designed to be accessible to taxpayers without representation. The OPA application is online, the form is fillable, and the eligibility thresholds are public. A typical tax-resolution-mill operator will charge $500–$3,000 to do the same paperwork you can do yourself in 30 minutes — and the loudest of them have FTC consent decrees on file. If your case truly requires professional help (large balance, business taxes, trust-fund recovery penalty, prior-year non-filing), hire a credentialed CPA, EA, or tax attorney directly — not a TV-advertised "pennies on the dollar" firm.