Southern California IRS Payment Plan Attorneys

We Can Help You Negotiate For a Reasonable IRS Payment Plan

When you have been unable to stay current with your IRS payments, it can lead to serious consequences, including freezing your bank accounts, garnishments, and the direct withdrawal of funds from your accounts to pay the debt. Rather than suffer the consequences, you can arrange a payment plan you can afford. The Dallo Law Group is here to help.

When you try to arrange an IRS payment plan on your own, you risk falling into a trap with a payment plan that ends up being beyond your ability to pay. While these payment plans may seem like a simple solution, they are binding legal contracts with long-term consequences. With the assistance of a seasoned payment plan attorney, you gain access to some advanced solutions that could serve you far better, such as a Partial Payment Installment Agreement (PPIA). These plans may allow taxpayers to make monthly payments that do not fully pay the total tax liability before the IRS collection statute of limitations expires, based on the taxpayer’s verified financial ability. Approval requires detailed financial disclosure, and the IRS may review the agreement periodically.

Our Process: Your Financial Situation Matters to Us.

Are you struggling to pay your IRS tax debt? At Dallo Law Group, we help evaluate your specific tax situation and calculate the lowest monthly payment the IRS will accept. Our approach establishes a personalized installment payment plan to help you get relief from your tax debt. Whether you owe a small or large amount, we can help you avoid IRS levies, wage garnishments, and tax liens.

Dealing with the IRS is usually overwhelming and stressful. Our team of certified tax attorneys and CPAs has helped individuals and businesses in Southern California resolve IRS debt issues for over a decade. Please schedule a consultation with one of our experienced tax attorneys to determine whether an IRS installment agreement is the most effective way to relieve pressure from the agency’s collection actions.

What Is An Installment Agreement?

An installment agreement (payment plan) can be the easiest solution to pay off taxes owed to the IRS. An IRS payment plan allows taxpayers to pay their tax liability over time in monthly installments. An installment agreement is a perfect option for taxpayers who are either unable to pay their tax liability in full as it comes due, do not qualify for an offer in compromise, or are currently in a non-collectible status.

How Does an IRS Payment Plan Work?

We don’t advise individuals with a significant tax debt try a DIY method to arrange an IRS payment plan. While it is an option, IRS payment plans set up without professional assistance generally follow standard IRS guidelines unless the taxpayer submits detailed financial information to support a lower payment amount. The “go it alone” process is available for all taxpayers, but will you achieve a result you can live with? The DIY method is as follows:

Determine Your Eligibility: Determine which type of installment agreement is right for you based on the taxes you owe, your ability to pay, and your current financial situation. It is essential to evaluate all available options and choose the way forward that best suits your situation.
Prepare Your Financial Information: Gather your income, expenses, and assets to complete the financial disclosures the agency requires to approve an installment agreement.
Determine the Payment Plan: Decide on the payment plan you wish to pursue and determine the amount you can afford to pay each month. You can use the IRS Online Payment Agreement tool, but a customized solution negotiated by our legal team could lead to a better outcome.
Make Payments: Once approved, start making payments on time and in full each month. You can use direct debit or make manual payments, depending on the terms of your agreement.
Stay Compliant: Ensure you meet all your tax filing and payment requirements while on the installment agreement. If you fail to pay on time or in full, the IRS will terminate the agreement and initiate aggressive collection action against you.
Finish Your Payment Plan: Once you complete your installment agreement payments and the tax liability is fully satisfied, the IRS will release any federal tax liens associated with the debt, typically within 30 days. Make sure to obtain written confirmation from the IRS that your agreement has been fully satisfied.

Protect Your Financial Health by Having an IRS Payment Plan Attorney on Your Side

Most people are only aware of the “Standard” installment agreements. However, there are Partial Payment Installment Agreements (PPIA) that allow you to pay the IRS much less than what you owe. You may be eligible for this arrangement. We will determine if you qualify for these advanced “Fresh Start” programs, potentially saving you thousands of dollars that a standard DIY application would miss.

Unlike a standard tax relief company or a general accountant, communications with a tax attorney have the attorney-client privilege. The protection and privacy allow you to communicate in a safe space where you can discuss the details of your financial situation openly. You gain a decisive advantage, as our actions can halt all collection actions at once. The IRS will no longer call you, show up at your door, or send you threatening letters, and must direct all communications to our tax lawyer. Imagine stress relief when your tax problem is under control.

How Long Will I Have To Continue Making Monthly Payments?

In general, installment agreements (payment plans) last until either (1) your tax liability is paid in full, or (2) the period of time the IRS is legally allowed to collect a debt (statute of limitations) expires.

A skilled tax attorney will help you determine whether you are a good candidate for a partial-pay installment agreement, which will expire when the collection statute of limitations expires. The IRS will write off any remaining tax liability after the deadline.

Calculating Your Monthly Payment Amount

Calculating the monthly payment that is appropriate for you will depend on an in-depth analysis of your financial condition. The lower your ability to pay, the lower the monthly installment amount will be– even if you owe a significant amount of back taxes to the IRS!

You will be required to meet a series of criteria:

Owed tax debt: You must have an outstanding tax debt to the IRS.
Timely filing: You must have filed all tax returns required by law, including current-year tax returns.
Payment capability: You must demonstrate that you are unable to pay the full amount of your tax debt upfront but can afford to make regular monthly payments.
Payment amount: The payment amount must be equal to or greater than the minimum payment required by the IRS, which varies depending on the amount of your tax debt and the term of the installment agreement (unless you qualify for a partial pay installment agreement).
Payment term: the payment term of an installment agreement depends on the type of plan and the taxpayer’s ability to pay. Streamlined agreements generally allow payments over up to 72 months, while partial payment installment agreements may extend until the IRS collection statute of limitations expires.
Compliance: You must agree to follow all tax laws and timely file all future tax returns while the installment agreement is in effect.

Types Of IRS Installment Agreements

Guaranteed Installment Agreement: If you owe $10,000 or less to the IRS, have filed all your returns, and haven’t had any trouble with the IRS in the past 5 years, you can request an installment agreement and pay off the balance within 36 months. The IRS won’t file a tax lien so long as you comply with the agreement.
Streamlined Installment Agreements for $25,000 or Less: If you owe $25,000 or less, can pay off the amount owed within 72 months, and are current with all your filing requirements, you can negotiate a payment plan with the IRS without disclosing your finances. You can avoid a tax lien with this type of agreement.
Streamlined Installment Agreements for $25,001 to $50,000: If you owe between $25,001 to $50,000 in back taxes, you can request a payment plan that allows you to pay off the amount owed within 72 months, and the government can directly debit from your bank account. The IRS won’t file a tax lien so long as you stay compliant.
In-Business Trust Fund Express Installment Agreements: If you own a small business with employees, you can apply for this type of payment plan if you owe $25,000 or less and can pay off the balance within 2 years. You don’t need to complete a financial statement or verification, but you must be compliant with all your filing and payment requirements.
Partial Payment Installment Agreements: If you can’t pay off your back taxes within 10 years, but you can pay back some of the amount owed, you can try negotiating a partial payment installment agreement. This type of agreement requires financial disclosure and verification, and the IRS may file a tax lien.
Non-Streamlined Installment Agreements: If you don’t qualify or can’t afford any of the above payment plans, you must complete a financial disclosure and verification with a local IRS collector. The collector will assess your ability to pay and may require the liquidation of assets or the elimination of household expenditures. The IRS will file a tax lien to secure its interests against other creditors.

What Are The Benefits Of An Installment Agreement?

The main benefit of an installment agreement is the ability of a taxpayer to defer payment of their tax liability and thus give some breathing room to settle the tax debt. Another significant benefit is that the IRS generally suspends new collection actions, such as additional levies or wage garnishments, as long as the taxpayer remains compliant with the terms of the installment agreement. However, interest and penalties continue to accrue, IRS notices may still be issued, and existing tax liens typically remain in place until the balance is fully resolved.

What Other Options Are Available For Me?

There are several tax debt settlement options that may be available for you. Even if an installment agreement is not the right vehicle to settle your tax debt, you may still qualify for an Offer in Compromise (OIC) or Currently Not Collectable (CNC) status. Contact Dallo Law Group to schedule a consultation to determine which tax settlement option is right for you!

What Happens If I Miss a Payment?

The IRS payment plan negotiated for you must reflect your current ability to pay, as missing a payment can lead to more trouble. Our tax lawyers focus on understanding your true financial situation and negotiating a payment plan that you can afford without suffering severe economic stress. The consequences of a failure to pay can be extreme, including:

Late Payment Penalty: The IRS charges a Failure to Pay penalty of 0.5% of the unpaid tax per month, up to a maximum of 25%. If a taxpayer has an approved installment agreement and is current with filing requirements, the penalty rate is reduced to 0.25% per month.
Increased Interest Rates: Interest begins to accrue from the original due date of the return and compounds daily. As of early 2026, underpayment interest rates are typically the federal short-term rate plus 3%.
Escalating Collection Actions: Notice CP523 (Intent to Terminate): If you miss a payment on an existing plan, the IRS will mail you a CP523 notice. This is a formal warning that they intend to terminate your agreement and seize your assets in 30 days if you do not act.
Notice of Federal Tax Lien: The IRS may file a public document alerting creditors that the government has a legal right to your property. This can severely damage your credit score and make it nearly impossible to sell or refinance a home.
Bank Account Levies: The IRS can legally “freeze” and seize funds directly from your checking, savings, or investment accounts to satisfy the debt.
Wage Garnishment: The IRS can contact your employer and require them to send a significant portion of your paycheck directly to the IRS until the debt is paid.

Serious Long-Term Consequences

Seizure of Property: In extreme cases, the IRS may seize and sell physical assets, including vehicles, real estate, and other personal property.
Passport Restrictions: If you owe “seriously delinquent tax debt” (generally exceeding $62,000 in assessed federal tax debt, adjusted annually for inflation), the IRS has the right to notify the State Department to revoke your current passport or deny a passport application.
Loss of Future Refunds: Any future federal or state tax refunds will be automatically seized and applied to your outstanding balance until the debt is satisfied.

How Can Dallo Law Group Help?

Dallo Law Group practices exclusively in tax controversy and IRS collection matters, and Installment Agreements (payment plans) are a significant part of our tax practice. We possess the experience, knowledge, and technical expertise to deliver the best settlement outcomes for you. Unlike many of the nationwide tax resolution companies that advertise on television and the radio, our local reputation and your satisfaction are of the highest importance to every member of our legal team.

Because determining the minimum payment the IRS or other taxing agency may accept under an installment agreement depends heavily on the specific facts and circumstances of the taxpayer, we take an individualized approach to every case and will conduct a thorough tax analysis to determine whether an installment agreement is right for you.

Contact Dallo Law Group at (619) 795-8000 to schedule a consultation!