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IRS Payment Plans for the Self Employed

IRS Payment Plans for the Self Employed

The Internal Revenue Service offers payment plans for self-employed.  If you are a sole-proprietor or independent contractor you are entitled to apply for a payment plan as an individual.  The particular circumstances related to your back taxes determine your payment options.

The payment options for sole-proprietors and independent contractors include full payment, a 120-day short-term payment plan or an installment agreement (payments for more than 120 days).


To qualify for a long-term payment plan your tax debt must be $50,000 or less including penalties and interest (see for more information) all of your tax filings must be up to date (no unfiled tax returns).  If you owe $100,000 or less including penalties interest and all of your returns are up to date you may qualify for a short-term payment plan.  Set up fees may also be incurred.

Payment Plans

***If your payment plan is approved and you owe more than $25,000 you will be required to make direct debit payments from your checking account.

A short-term payment plan does not have a setup fee but will accrue penalties and interest until the balance is paid in full.  A short-term payment plan requires automatic payments from your checking account, debit or credit card, check or money order.  There will be additional fees if your payment is with a card.

There are two types of long-term payment plans offered (installment agreements).  (1) Payments made through automatic withdrawal, there is a $31 set up fee.  Penalties and interest will continue to accrue until the balance is paid in full.  (2) Payments not paid through direct debit include a $149 set up fee.  Penalties and interest will continue to accrue until the balance is paid in full. This plan can be paid by check, money order, debit or credit card.  There is an additional fee if paid by credit card.

Your specific tax situation will determine which options are available to you.  For assistance determining the correct balance due, filing amended returns and setting up a payment plan call us for assistance.  By pulling tax transcripts we frequently find missed deductions or errors on prior returns and are able to reduce the balance owed and the subsequent penalties and interest.  We can also assist you in setting up the appropriate payment plan.

Our Enrolled Agents are ready to help with almost 30 years of experience working with the Internal Revenue Service on behalf of clients just like you.  Our Enrolled Agents will listen to your concerns and find the solution that works best for you.  We are a small company.  You will not get lost in the crowd and you work directly with an Enrolled Agent, not a case manager.  We only promise reasonable options for our clients who owe the IRS and we deliver those results quickly with no hidden fees.

We serve all 50 states and the territories of the United States.

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