How to Help Clients Set Up Payments with IRS & Installment Agreements

How to Help Clients Set Up Payments with IRS & Installment Agreements

Setting up payments with the IRS can be a challenging process for clients facing financial difficulties and complex tax situations. As a CPA, tax professional, or enrolled agent, your expertise and guidance are crucial in helping clients navigate the intricacies of establishing installment agreements and other payment arrangements with the IRS. In this comprehensive guide, we’ll provide you with essential information and best practices to effectively assist your clients to set up payments with IRS, ensuring their tax obligations are met in a manageable and compliant manner. We’ll cover the various types of installment agreements, eligibility criteria, application processes, and tips for successful negotiations with the IRS. By mastering these strategies, you’ll be able to confidently support your clients in resolving their tax issues and securing favorable payment terms.


At the end of this tax season, will a few of your clients owe back taxes? Probably.


Will any have trouble coming up with the money when it is due? Also probably.


In fact, if you have a good season, chances are more than one of your clients will be in this position. What will your clients do if they can’t pay their taxes within what the IRS considers a reasonable timeframe?


Since there is no more debtors’ prison, this is where you can help. If one or more of your clients are strapped for cash, remind them they can request to make monthly payments through an IRS installment agreement. There are a few options to choose from.


The type of arrangement available depends on the amount of taxes your client owes and how quickly they are able to pay. From there, the IRS makes tax payment plans available.

Individual Installment Agreement

Individuals who owe $50,000 or less in income tax, interest, and penalties (combined) qualify for this plan. They set up an installment agreement and then make regular monthly payments over time.
Pretty simple, right?


Absolutely—unless they default.


Stress the importance to your clients of keeping agreements with the IRS. When your client sets up an installment agreement, impress upon them their responsibility to make the monthly payments without defaulting.


Once the decision to set up an installment agreement is made, inform your client that they can make payments in several ways. They can either set up payments through Direct Debit from a bank account, pay by check or money order, or credit card. If they choose to pay by credit card, they can make their payment either online or by phone.


If your client prefers, they can use EFTPS (Electronic Federal Tax Payment System), request a payroll deduction from their employer, or set up an Online Payment Agreement (OPA).

How to Apply

To apply for an installment agreement, your client must fill out and mail IRS Form 9465. This is an installment agreement request form. You can either walk them through the process or they can apply online at

Receipt of a Notice

Inform your client of what to do if they receive a tax bill or notice. If you need a little help with expediting this process, IRS Solutions has the answers. We’ll let you know about any fees that might be associated with setting up the agreement and what to do if your client’s income is below a certain level.


Will you know how to serve your client if they come to you for assistance?

How IRS Solutions Software Helps Tax Pro’s Set Up Payments with IRS

IRS Solutions Software gives you the confidence to provide services you may have been uncomfortable with in the past, including guiding your clients through the installment agreement process. Another benefit of membership is the training you get on our monthly case study calls.

By making sure your clients understand the importance of responding to IRS letters and new laws you’ll both avoid a big surprise when you least need it next tax season.

Don’t Miss Out! Sign up with IRS Solutions Software .



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