Can You Have Two Installment Agreements With the IRS?
You cannot hold two separate installment agreements at once. If you owe for a new tax year, that balance is added to your existing agreement rather than starting a second one, and you must request the change quickly. Interest and penalties continue on the full past-due balance until it is resolved.
When you cannot pay the taxes you owe, you can establish an IRS installment agreement to pay down the balance over time. If you are assessed taxes you are unable to pay in a future tax year, you can add that new balance to your existing agreement this does not constitute a second agreement. Keep in mind that the IRS will continue to charge interest and penalties on the full amount of your past-due balance until it is resolved completely.
Consolidating Tax Balances
If you already have an installment agreement and you also expect to owe taxes for the current year, you must act quickly to request a change to your existing installment agreement. Once a new tax balance is assessed by the IRS, you will be considered in default of the current agreement.
You can request an amendment to the installment agreement by:
- Calling the IRS at 1-800-829-1040
- Visiting a local IRS office
- Completing Form 9465 with information about both the original agreement balance and the expected new balance
Take one of these steps before the due date for the tax year in question to avoid collections actions that will place your existing installment agreement in default.
The easiest way to amend your installment agreement is with the IRS online payment agreement tool. You can revise the type of plan, the monthly payment due date, banking information and the payment amount. You may be asked to revise a proposed payment amount that is too low.
If you find that you’re unable to make the minimum monthly payment after your new tax debt is added to your existing balance, please complete Form 433-F Collection Information Statement. This may allow you to qualify for a reduced monthly payment based on your financial situation, particularly if making a higher payment would prevent you from covering your necessary living expenses.
To modify an existing payment plan, the IRS charges a fee of $10 for online requests or $89 for requests made by phone, mail, or in person. Low-income taxpayers may qualify for a reduced fee or a fee waiver depending on their circumstances.
Types of Installment Agreements
If you are requesting a new installment agreement, its terms will depend on the amount of tax you owe and other factors. These are the most common types of installment agreements granted by the IRS.
Guaranteed Installment Agreement
This program is available for taxpayers who owe less than $10,000 before interest and penalties are assessed and who can pay the total balance within 36 months. To qualify, you must:
- Have filed all required returns and paid all taxes due for the past five years
- Not already be in an installment agreement
- Be able to make a payment of at least the amount of your total balance with penalties and interest divided by 36.
Unlike other installment agreements, this plan will not result in a federal tax lien if one has not already been filed.
Streamlined Installment Agreement
With a streamlined agreement, you can qualify for an automatic payment plan without providing additional financial information. This program, sometimes called part of the Fresh Start program, is available for taxpayers who owe less than $50,000 and can pay their balance in full within 72 months. You must make a minimum monthly payment of $25 or the total balance with penalties and interest divided by 72 — whichever amount is greater.
Although a streamlined installment agreement may include a setup fee based on your selected payment method, it generally will not result in a federal tax lien being filed, provided a lien has not already been filed and you establish the agreement as a Direct Debit Installment Agreement (DDIA).
Direct Debit Installment Agreement (monthly payment deducted from your checking account):
- $22 if you apply online
- $107 if you apply in person, by phone, or by mail
Other payment methods (payroll deduction, check, money order, credit card, or online payment through the IRS website):
- $69 if you apply online
- $178 if you apply in person, by phone, or through the mail
Taxpayers whose household income is at or below 250% of the federal poverty threshold can apply to have these fees reduced or waived.
Partial Payment Installment Agreement
If you can’t afford to pay your entire balance before your CSEDs expire, you can arrange for a partial payment agreement. To qualify, you must complete Form 433-F, which requires information about your assets, monthly income, and monthly expenses. The IRS will review this information and may require you to sell or borrow against assets to pay back some of the debt.
Those who are approved for this type of agreement may undergo a financial review every two years. If your financial situation changes, your agreement could be modified or terminated.
Non-Streamlined Installment Agreement
Taxpayers who owe more than $50,000 can negotiate an installment plan but must submit Form 433-F. The financial information included in this document will be used to accept or reject your proposal. You must also indicate a desired monthly payment amount. With this type of agreement, you will receive a decision within several months.
If your proposal or payment amount is refused, you have the right to appeal. Refusal can occur if:
- You provided false or incomplete information
- You have demonstrated living expenses the IRS considers frivolous
- You defaulted on an IRS installment agreement in the past
If you can’t pay your tax debt, Anthem Tax can help. Answer a few simple questions on our contact page and we will be in touch with you shortly.
September 19, 2026
September 19, 2026
