The IRS has already forgiven an estimated $250M in tax debt in 2025. To check your eligibility for tax forgiveness, click here.

If you owe back taxes, one of the first things you’ll hear about is an IRS payment plan — also known as an Installment Agreement. But before you apply for one, it’s important to know that this may not be your best option.

The IRS Fresh Start Program offers multiple ways to reduce, pause, or even settle your tax debt for less than what you owe — and it only takes a few minutes to find out if you qualify.

When taxpayers fill out our Tax Relief Survey, they are able to see if they qualify for the IRS Fresh Start Program and begin their journey toward tax resolution in minutes.

IRS programs like Offer in Compromise and Currently Not Collectible Status provide relief to taxpayers who cannot afford high monthly payments. Thanks to recent eligibility changes, these programs are now open to more taxpayers than ever before.

Here are three key points to consider before agreeing to an IRS payment plan.

1. Payment Plans Don’t Stop Penalties & Interest

An IRS payment plan only spreads your debt out over time. You’re still responsible for the full amount, plus interest and penalties that continue to grow until the balance is paid in full.

In many cases, taxpayers end up paying thousands more than their original balance — and the payments themselves can become unaffordable over time.

Take this 60-second Quiz to See if You Qualify for the IRS Fresh Start Program.

2. You Might Qualify for a Reduced Settlement

The IRS Fresh Start Program includes an option called an Offer in Compromise (OIC) — which allows qualified taxpayers to settle their debt for less than they owe.

In some situations, people have seen their tax balances reduced by tens of thousands of dollars — but most don’t explore this option because they assume they don’t qualify. That’s why it’s important to check your eligibility before committing to a long-term plan.

3. Collections May Be Temporarily Paused

Another often-overlooked option is Currently Not Collectible (CNC) status, which places a hold on IRS collections — meaning no payments, no garnishments, and no levies while you’re facing a financial hardship.

If your income or expenses meet certain thresholds, this protection could give you the breathing room you need — without locking yourself into a rigid payment plan.

Take the Next Step

Once you agree to a monthly payment plan with the IRS, it can be difficult to reduce your payment amount.

Remember, it is 100% FREE to see if you qualify for the IRS Fresh Start Program, and a few minutes could help you save THOUSANDS.

Every day, your tax debt grows larger and larger due to penalties and fees. It is vital to act now and partner with a tax relief expert to receive the best resolution possible.