Three simple IRS payment plans

The simplest IRS long term payment plans to setup are:

  • 36-month payment plan: Guaranteed Installment Agreement (GIA)
  • 72-month payment plan: Streamlined Installment Agreement (SLIA)
  • Full-pay non-streamlined installment agreement (NSIA): As of March, 2020, the IRS removed the 84-month agreement (Streamlined Processing Payment Plan Pilot Program or SLIA for amounts owed between $50,000 – $100,000). The IRS replaced the 84-month agreement with the full pay NSIA. The NSIA allows a taxpayer to pay the balance owed before the collection statute expires, which is generally up to 120 months, unless the statute is extended,1 if the balance owed is for a current year.

Why are they simple?

Taxpayers who owe less than $250,000 and meet the terms and conditions of the programs can set up a payment plan in a phone call with the IRS. These plans require a lot less paperwork than installment agreements in which the taxpayer has to prove their “ability to pay.” Taxpayers do not have to file financial information with the IRS or prove their ability to pay. Also, taxpayers do not have to liquidate or borrow against assets.