Can I Have More Than One IRS Payment Plan?

Written by Top Dog Tax Relief          
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Overview

When you can’t pay your tax bill in full, an IRS payment plan can feel like a lifeline. But what happens if you owe additional taxes while you’re still paying off an existing plan? Can you have two IRS installment agreements? The short answer is no. The IRS won’t allow you to run two payment plans at the same time. If you fall behind again, however, your current agreement could be in jeopardy. The good news? There’s a way to fold that new balance into your existing plan and keep the IRS off your tail.

Key Takeaways

  • The IRS does not allow multiple installment agreements at the same time. If you incur new tax debt, you must amend your existing plan.

  • You can amend your current payment plan by calling the IRS, visiting a local office, or filing Form 9465, but timeliness is crucial to avoid default.

  • Different IRS payment plans exist depending on your balance and financial situation, but failing to amend or maintain your plan can lead to termination and additional fees.

How to Add New Debt to an Existing Payment Plan

If you expect to owe more taxes, don’t wait until the IRS sends you a bill. That’s when your plan can go into default. Instead, amend your current agreement before the new debt officially hits your account.

Here’s how:

  • Call the IRS at 1-800-829-7650 and ask to amend your agreement,
  • Visit your local IRS office, or
  • File Form 9465, Installment Agreement Request, online or by mail.

If your total balance (old + new) is under $50,000, you can handle it online. Otherwise, you’ll need to speak directly with the IRS.

Keep in mind:

  • Amending your plan comes with a $10 fee (unless you qualify for a low-income waiver).
  • You’ll need to provide both your current balance and your estimated new debt.
  • You can adjust your payment type, amount, and due date, but if your proposed payment is too low, the IRS may push back.

The Most Common IRS Payment Plans

Which plan you qualify for depends on how much you owe and your ability to pay

Guaranteed Installment Agreement

  • For balances under $50,000
  • Paid off within 180 days
  • No other installment agreements in the last five years

Streamlined Installment Agreement

  • For balances up to $50,000
  • Paid off within 72 months
  • Minimum $25/month or the balance divided by 72

Non-Streamlined Installment Agreement

Partial Payment Installment Agreement

  • For taxpayers who can’t pay off the balance in 72 months
  • Requires financial hardship proof (Form 433-F)
  • IRS reviews your finances every two years. May be altered or terminated if your financial situation improves

What If I Default?

If you don’t amend your plan in time and the IRS assesses new debt, you’ll likely get a notice of termination. Don’t panic; you can still act.

Follow the instructions on your notice and contact the IRS right away. While your request is under review, enforced collection actions (like levies) should be on hold. But be prepared for:

  • A reinstatement fee if your plan lapses.
  • The possibility of rejection (though you can appeal).

Don’t Go It Alone

The IRS doesn’t make this process easy, and mistakes can cost you big. That’s where we come in. At Top Dog Tax Relief, our experts know how to negotiate with the IRS, protect your wallet, and get you the best possible payment plan. Call 855-753-3569 today for a free, no-obligation consultation. Let’s take the bite out of your tax debt!