Installment Agreements
If you cannot pay your full tax liability at once, an IRS or California FTB installment agreement may allow you to resolve your debt through manageable monthly payments. NewPoint Law Group's tax attorneys help Roseville-area clients negotiate installment agreements that protect them from collection action while satisfying their tax obligations.
Tax Installment Agreements | Tax Attorneys in Roseville, CA
What Is an Installment Agreement?
An installment agreement (IA) is a formal payment plan arrangement with the IRS or California tax agencies that allows taxpayers who cannot pay their full tax liability to resolve their debt through structured monthly payments. While interest and certain penalties continue to accrue during the payment plan, an installment agreement stops the most aggressive collection actions and provides a clear path to resolution.
Types of IRS Installment Agreements
Guaranteed Installment Agreement: Available to individual taxpayers who owe $10,000 or less and meet other qualifying criteria. The IRS must accept these agreements.
Streamlined Installment Agreement: For individuals owing up to $100,000, streamlined agreements can often be established without a financial disclosure.
Non-Streamlined Installment Agreement: For larger liabilities, a detailed financial disclosure (Form 433-A or 433-B) is required. The terms are based on the taxpayer's ability to pay.
Partial Payment Installment Agreement (PPIA): For taxpayers who cannot afford payments that will fully pay the liability within the collection statute period, a PPIA may allow lower payments with the possibility that remaining debt expires at the end of the statute.
California FTB Installment Agreements
The California Franchise Tax Board also offers installment agreements for taxpayers who cannot pay their state income tax liability in full. The FTB evaluates a taxpayer's financial situation to determine the appropriate monthly payment amount. Similar plans are available through the California Department of Tax and Fee Administration (CDTFA) for sales tax liabilities.
Protecting Your Rights During Collections
When an installment agreement is in effect, the IRS generally must suspend most collection actions. However, installment agreements can default — resulting in immediate reinstatement of collection activity — if payments are missed, returns are not timely filed, or new tax liabilities arise. Our attorneys help clients negotiate favorable terms and maintain compliance to protect against default.