Installment Agreement Calculator
By Forrest Baumhover, CFP®, EA · Last verified October 7, 2026
Size an IRS installment agreement (payment plan): Guaranteed, Simple Payment Plan, or Simple Payment Plan (Business Trust Fund), per IRM 5.14 and current SB/SE interim guidance.
Which installment agreement fits, and how the minimum payment is set
The calculator above checks a taxpayer against three administrative agreement types, in this order, and stops at the first one that applies. A Guaranteed fit may also fit a Simple Payment Plan, which can carry a lower payment when the CSED lies more than 36 months away. Anything that fits none of them needs a full financial statement.
| Agreement | Balance limit | Payment term |
|---|---|---|
| Guaranteed installment agreement (individuals only) | $10,000 | Full payment within 36 months (3 years) |
| Simple Payment Plan | $50,000 | Pay in full by the collection statute expiration date (CSED) |
| Simple Payment Plan, Business Trust Fund | $25,000 | Pay in full by the CSED |
- Guaranteed installment agreement. Under IRC §6159(c), the IRS must accept an installment agreement from an individual who meets every condition below:
- Income tax liability of $10,000 or less (not counting interest, penalties and additions)
- No failure to file, failure to pay, or installment agreement in the preceding five years
- Cannot pay the balance in full when it is due
- Agrees to pay in full within three years and to stay compliant
- Simple Payment Plan. Under Interim Guidance Memoranda SBSE-05-0325-0008 (individual accounts) and SBSE-05-0126-0008 (business accounts), a balance up to $50,000 can be placed on a plan with no fixed term: the payment is set so the balance is paid by the CSED. IRM 5.14.5, revised July 21, 2026, now carries both memos' rules, so cite the IRM.
- Simple Payment Plan, Business Trust Fund. The same approach applies to a business's trust-fund balance up to $25,000, under the second memo.
- Anything larger. A full collection information statement is required; see the Form 433 helper. If the taxpayer cannot afford any payment, the offer in compromise pre-qualifier is the next place to look.
How the minimum monthly payment is calculated
The minimum is the balance divided by the months in the term, rounded up to the cent. For a guaranteed agreement the term is 36 months, or fewer if the CSED comes sooner. For a Simple Payment Plan the term is the months remaining until the CSED, so the calculator needs that date; without it, it says so rather than inventing a term. Find the date with the CSED calculator.
Guaranteed example. An individual owes $9,000, under the $10,000 limit and eligible on the other conditions. $9,000 over 36 months is a minimum of $250 a month.
Simple Payment Plan example. A taxpayer owes $30,000 with 60 months left before the CSED. $30,000 over 60 months is a minimum of $500 a month.
Both examples are computed by this calculator, not typed in. This is a practitioner tool for sizing an agreement under IRM 5.14 and current SB/SE guidance. It does not apply IRS user fees or the limits on the IRS's own online payment agreement application, and it does not model short-term payment plans, which the IRS describes as paying in 180 days or less. For those, see the IRS's payment plans page.
This section covers what changed in the Simple Payment Plan programs, a Business Trust Fund worked example the calculator above does not show, and what the tool does not model. For the balance-limit table and the Guaranteed/Simple Payment Plan examples, see the results above.
What changed in 2025 and 2026, and where the IRM stands now
Two Interim Guidance Memoranda renamed the older Streamlined Installment Agreement and In-Business Trust Fund Express programs: IGM SBSE-05-0325-0008 (individual accounts) and IGM SBSE-05-0126-0008 (business trust-fund accounts; it also covers out-of-business sole proprietors and non-trust-fund in-business accounts). Both dropped the fixed monthly term — the taxpayer now pays in full by the CSED (Collection Statute Expiration Date) — and neither requires Direct Debit or Payroll Deduction any longer. IRM 5.14.5, revised July 21, 2026, now carries both memos' rules, so cite the IRM. The older Streamlined name survives only in the history above.
The rule to give a client: term now runs to the CSED, not a fixed count — a longer CSED means a lower monthly payment, a shorter one forces a higher one. Check the CSED first with the CSED Calculator — if the forced payment is not affordable, this program may not fit; see the OIC Pre-Qualifier or CNC Eligibility Calculator instead.
Simple Payment Plan (Business Trust Fund): worked example, and what can still disqualify it
A business owes $18,000 in trust-fund payroll tax, stays in business and compliant, and carries a CSED of April 1, 2030 — under the $25,000 ceiling for Simple Payment Plan (Business Trust Fund). The program requires no Collection Information Statement or Direct Debit, and waives the trust fund recovery penalty (TFRP) determination only if the IRS grants the plan within 120 calendar days of case assignment and the plan pays the balance in full by the CSED (IRM 5.14.5.4(6)). Divide $18,000 by the 41 whole months to the CSED (counted from October 1, 2026) and round up to the cent:
- Minimum monthly payment: $439.03
- Term: 41 months, running to the CSED rather than a fixed count
A mixed trust-fund/income-tax liability meets the same $25,000 test — IRM 5.14.5.4(1)(a) measures the whole account balance, not the trust-fund portion alone. IRM 5.14.5.4 treats an unpaid trust fund portion as a Business Trust Fund case; confirm the split with the revenue officer, or the Practitioner Priority Service if none is yet assigned.
The rule to give a client: qualifying under the balance ceiling isn't the same as qualifying for approval — the IRS does not grant the plan when the request comes with a levy-release request or meets "Solely to Delay" criteria (IRM 5.14.5.4(3); IRM 5.14.3.3), and a mixed trust-fund/income-tax balance needs the revenue officer's confirmation, not an assumption.
What this tool does not model
- A Partial Payment Installment Agreement, an Offer in Compromise, or CNC status — try the OIC Pre-Qualifier or CNC Eligibility Calculator instead.
- A full Notice of Federal Tax Lien determination — the lien-filing indicator above only reflects that no NFTL determination applies here.
When to call a practitioner
- No known CSED — pull one from the CSED Calculator first.
- A mixed trust-fund and income-tax liability.
- A balance above every ceiling.
- A prior installment agreement defaulted within five years.
Common Questions
Is the Streamlined Installment Agreement still available?
Not under that name. Two IGMs renamed it Simple Payment Plan and Simple Payment Plan (Business Trust Fund), replacing its fixed term with paying the balance in full by the CSED. The $50,000 and $25,000 ceilings stay; the IRM dropped the fixed term, the Direct Debit rule and the CIS rule.
What if the balance exceeds every Simple Payment Plan ceiling?
It generally needs a full Collection Information Statement — Form 433-A/433-F for individuals, Form 433-B for businesses — before the IRS sets a payment.
More from the Desk
Download the IA Payment Calculator Compliance Card (PDF) — to record your firm’s review of this tool
Need help with your specific situation?
This tool gives you the numbers and the citation, but every case has details a calculator can’t weigh. For a second opinion from a tax professional, email Forrest directly. Do not email Social Security numbers, account numbers, or other sensitive information. An email creates no client-practitioner engagement; case-specific advice starts only after both parties have mutually accepted terms and payment has been made.
Email Forrest Baumhover, CFP®, EA →Sources
- IRC §6159 — Agreements for Payment of Tax Liability in Installments
- IRM 5.14.5 — Simple Payment Plans, Guaranteed Installment Agreements, and Simple Payment Plans (Business Trust Fund)
- IRM 5.14.7 — BMF Installment Agreements
- IRM 5.14.1 — Securing Installment Agreements (Payment Plans)
- IGM SBSE-05-0325-0008 — Interim Guidance for Field Collection on Simple Payment Plans (Formerly Streamlined Installment Agreements) for IMF Accounts with Balances up to $50,000
- IGM SBSE-05-0126-0008 — Revised Interim Guidance for Field Collection on New Simple Payment Plans for Business Master File (BMF) Taxpayers
Read the Deep Dive behind this tool: Deep Dive: The Complete IRS Collections Timeline