If you owe back taxes to the IRS, but can’t pay the full amount all at once, you’re not alone. Many individuals and small business owners across Lake Norman, NC are struggling to catch up. Thankfully, the IRS provides structured repayment plans—called Installment Agreements—that can help you get back on track without facing levies, garnishments, or escalating penalties.

But here’s what most people don’t realize: not all Installment Agreements are the same. And if you simply call the IRS and accept the first option they give you, you may end up paying far more than necessary.

In this blog, we’ll break down the different types of IRS payment plans, common mistakes people make when setting them up, and how Polaris Tax & Accounting helps Lake Norman clients navigate the system for better results.

What Is an IRS Installment Agreement?

An Installment Agreement is a formal payment plan with the IRS that allows you to pay your tax debt over time. There are multiple types, depending on how much you owe and your financial circumstances:

  • Guaranteed Installment Agreement: For individuals who owe less than $10,000 and can pay it off in 36 months.
  • Streamlined Installment Agreement: For debts under $50,000, typically with automatic monthly payments.
  • Non-Streamlined or Regular Installment Agreement: For balances over $50,000 or when more time is needed to pay.
  • Partial Payment Installment Agreement (PPIA): For individuals who can’t pay the full amount, even over time, and qualify for a lower monthly payment.

Why the Default Option Isn’t Always Best

The IRS will often steer taxpayers into a standard payment plan—without reviewing whether they qualify for a better option. Some common issues include:

  • Agreeing to unaffordable monthly payments
  • Failing to account for necessary living expenses
  • Not requesting penalty relief or interest reduction
  • Missing out on other programs like Currently Not Collectible (CNC) status

At Polaris, we’ve seen Lake Norman taxpayers unknowingly lock themselves into aggressive payment plans simply because they didn’t know better—or weren’t properly advised.

How Polaris Tax & Accounting Helps

Unlike national chains or DIY platforms, our firm digs deeper. Here’s how we handle Installment Agreement cases in Lake Norman:

  • Full transcript analysis to verify what the IRS believes you owe
  • Financial documentation review to determine eligibility for lower payments
  • Custom strategy development to compare Installment Agreement vs. Offer in Compromise
  • Negotiation with IRS agents to reduce payment amounts or penalties
  • Automated compliance monitoring to prevent default or further collections

We don’t just fill out forms—we protect your financial future.

Local Success Story: From Stress to Stability

A Lake Norman entrepreneur came to us after the IRS levied their bank account for a $72,000 debt. They had tried to set up payments through the IRS website but were denied due to prior defaults. Polaris stepped in, submitted financials, and negotiated a Partial Payment Installment Agreement with a $246 monthly payment and a freeze on further collections.

Now, they’re back to focusing on their business—with peace of mind.

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Don’t Let the IRS Dictate the Terms

If you owe the IRS and want to make payments—but on your terms—Polaris Tax & Accounting is here to help. From Cornelius to Huntersville and beyond, our team helps clients across the Lake Norman region set up the right plan, avoid default, and reduce long-term financial damage.

Schedule your consultation here →