What is a virtual CPA?

A virtual CPA provides the same services as a traditional CPA firm — tax preparation, bookkeeping, audits, financial planning — but delivers them remotely using secure cloud technology. You get expert-level service without visiting a physical office.

How much do virtual CPA services cost?

Pricing depends on the complexity of your financial situation and the services you need. We provide transparent fee estimates during your initial consultation. Virtual CPA firms typically have lower overhead than traditional firms, which translates to more competitive rates.

Do I need an audit for my nonprofit?

Many states require nonprofits to have an independent audit once they exceed certain revenue thresholds, often $500,000-$750,000. Grant-making organizations and government agencies frequently require audited financial statements. We can help determine your specific audit requirements.

What is the difference between an S-Corp and an LLC for tax purposes?

An LLC provides liability protection and pass-through taxation by default. An S-Corp election can provide additional tax savings by allowing owners to split income between salary (subject to payroll taxes) and distributions (not subject to payroll taxes). The right choice depends on your income level, business structure, and state tax laws.

What does a virtual CFO do?

A virtual CFO (fractional CFO) provides high-level financial strategy and oversight on a part-time basis — budgeting, forecasting, cash flow management, financial analysis, KPI reporting, and strategic financial planning. You get C-suite financial leadership without the full-time cost.

Can you help if I'm behind on bookkeeping or taxes?

Yes. We offer catch-up bookkeeping services to bring your books current and can help resolve back tax issues including IRS notices, unfiled returns, and payment plans.

What accounting software do you work with?

We work with QuickBooks Online, Xero, FreshBooks, Wave, and other major cloud accounting platforms. We can also help you select and set up the best software for your business.

How do I prepare for tax season?

Organize financial records throughout the year, keep receipts for business expenses, track mileage and home office usage, make quarterly estimated tax payments, and schedule a year-end tax planning session before December 31.

What is DCAA compliant accounting?

DCAA (Defense Contract Audit Agency) compliant accounting is a system that meets federal government requirements for contractors. It includes proper timekeeping, job cost accounting, indirect cost allocation, and specific internal controls required for government contract work.

Do I need a CPA or a bookkeeper?

Bookkeepers handle day-to-day recording of financial transactions. CPAs handle higher-level work — tax planning and preparation, audits, financial analysis, and strategic advice. Many businesses need both. Our firm provides both services so you have one team managing everything.

What's the difference between an audit, review, and compilation?

An audit provides the highest level of assurance through independent verification of financial statements. A review provides limited assurance through analytical procedures and inquiries. A compilation presents financial information in statement format without assurance. The right choice depends on your stakeholders' requirements.

Do you serve businesses outside the DMV area?

Yes. While our primary service area is Washington DC, Maryland, and Virginia, we serve clients nationwide through our 100% virtual model. Our cloud-based systems allow us to work with businesses anywhere in the United States.

How long does it take to set up an IRS installment agreement?

A streamlined installment agreement (under $50,000) can be approved instantly through the IRS Online Payment Agreement tool at irs.gov/opa. Regular or partial pay agreements submitted via Form 9465 typically take 4–6 weeks for IRS processing. If you submit through a CPA with Power of Attorney, you can often get faster informal approval over the phone.

Can the IRS reject my installment agreement request?

Yes. The IRS may reject your request if you have unfiled tax returns, if you have defaulted on a prior installment agreement, or if the IRS determines you can pay the balance in full based on your assets and income. A CPA can structure your application to minimize rejection risk and appeal a denial if needed.

What happens if I miss a payment on my IRS installment agreement?

Missing a payment triggers default on your installment agreement. The IRS will send CP523 (Notice of Intent to Terminate Your Installment Agreement), giving you 30 days to reinstate. If you do not act within 30 days, the IRS can resume full collection enforcement — including levies and garnishments. You are entitled to one reinstatement per agreement.

Does interest continue to accrue during an installment agreement?

Yes. The federal short-term interest rate plus 3% applies to your outstanding balance throughout the life of your installment agreement. The failure-to-pay penalty (0.5% per month) is reduced to 0.25% per month while you are in an active installment agreement, but it does not stop entirely. The total balance grows until it is paid in full.

Can I change my payment amount after an installment agreement is approved?

Yes. You can request to revise the terms of your installment agreement by calling the IRS or submitting an updated Form 9465. Changes are more likely to be approved if your financial circumstances have changed. If you need to lower payments significantly, you may need to submit updated financial information on Form 433-F.

What is the difference between an installment agreement and an offer in compromise?

An installment agreement is a payment plan to pay your full tax debt over time (plus penalties and interest). An offer in compromise settles your debt for less than the full amount owed, based on your ability to pay. Installment agreements are easier to qualify for but cost more over time. Offers in compromise require demonstrating you cannot pay in full even over an extended period.

Last Updated: May 2026

IRS Installment Agreement Guide: How to Set Up a Payment Plan

Can't pay your IRS tax debt in full? You have options. A licensed CPA can negotiate an installment agreement that stops enforcement action and gives you a manageable payment schedule — often without disclosing full financial details.

View IRS Resolution Services

How do I set up an IRS installment agreement?

To set up an IRS installment agreement, determine which type you qualify for (streamlined for under $50,000 requires minimal documentation; regular requires Form 433-F), then apply online at IRS.gov or through a licensed CPA. Approved agreements allow 24–72 monthly payments. Penalties and interest continue to accrue until the balance is paid in full.

IRS Installment Agreement: An IRS installment agreement (also called a payment plan) is a formal arrangement between a taxpayer and the IRS to pay a tax debt over time in monthly installments. The IRS must approve the agreement, and the taxpayer must remain compliant with all future filing and payment obligations while the plan is active.

IRS Payment Plan Types Compared

Feature	Streamlined	Regular (Full Pay)	Partial Pay (PPIA)
Balance limit	Under $50,000	Any amount	Any amount
Financial info required	No (Form 433 not required)	Yes (Form 433-A/F)	Yes (Form 433-A/F)
Maximum term	72 months	Varies	Until collection statute expires
Pays full balance
IRS approval time	Instant (online)	4–6 weeks	4–8 weeks
Best for	Most individuals and businesses	Larger balances with ability to pay	Cannot pay in full even over time

How to Set Up an IRS Payment Plan: 5 Steps

1
Pull your IRS account transcripts
Obtain official IRS transcripts online at irs.gov or through a CPA using Form 8821/2848. This shows your exact balance, any missing returns, and the collection statute expiration date (CSED).
2
Determine which installment agreement type fits your situation
Compare your balance and financial situation against the three agreement types: Streamlined (under $50K), Regular (larger balances), or Partial Pay (cannot fully pay). Your CPA will run the numbers.
3
Address any unfiled returns first
The IRS requires you to be current on all tax filings before approving a payment plan. File any delinquent returns (even if you cannot pay) to become eligible for an agreement.
4
Submit your application
Streamlined: apply at irs.gov/opa. Regular/PPIA: complete Form 9465 (Installment Agreement Request) and Form 433-A or 433-F (Collection Information Statement). A CPA submits via Power of Attorney.
5
Stay compliant while your agreement is active
File and pay all future taxes on time, make every scheduled payment, and notify the IRS of any address changes. Defaulting on your agreement triggers immediate enforcement action.

Types of IRS Payment Plans in Detail

Streamlined Installment Agreement

Available to individuals and businesses owing under $50,000 (including tax, penalties, and interest). You do not need to submit Form 433-A or 433-F disclosing your full financial picture. Approval can be instant through the IRS Online Payment Agreement portal. Terms allow up to 72 months. This is the most common type for individual filers.

Regular (Full Pay) Installment Agreement

Required when balances exceed $50,000 or the taxpayer requests more than 72 months. The IRS requires a Collection Information Statement (Form 433-A for individuals or 433-F as a shorter alternative) showing all income, expenses, and assets. The IRS will calculate your ability to pay and may require larger monthly payments based on your disposable income. Processing takes 4–6 weeks.

Partial Payment Installment Agreement (PPIA)

Designed for taxpayers who genuinely cannot pay the full balance even over the remaining collection statute (typically 10 years from assessment). Monthly payments are set at the maximum you can afford. The IRS reviews the agreement every two years and may increase payments if your financial situation improves. Any balance remaining when the collection statute expires is legally uncollectible.

What the IRS Checks Before Approving Your Plan

Before approving any installment agreement — especially regular and PPIA types — the IRS reviews several factors:

Filing compliance: All required returns must be filed. The IRS will not approve a payment plan for a taxpayer with outstanding unfiled returns.
Current year compliance: You must have adequate withholding or estimated tax payments for the current year to avoid adding to the balance during the agreement period.
Prior installment agreement history: Prior defaults on IRS payment plans reduce your chances of approval and may require direct debit authorization.
Asset equity: For larger balances, the IRS expects you to liquidate available assets (savings, investment accounts) before granting a payment plan. A CPA can help you structure this conversation.
Allowable expenses: For financial disclosure agreements, the IRS uses National Standards and Local Standards to limit which expenses are "allowed" when calculating your disposable income.

How Penalties and Interest Work During a Payment Plan

Many taxpayers are surprised to learn that entering an installment agreement does not freeze the clock on interest and penalties. Here is what continues to accrue:

Underpayment interest: Federal short-term rate + 3%, compounded daily on the outstanding balance.
Failure-to-pay penalty: Normally 0.5% per month (up to 25% of tax owed). Reduced to 0.25% per month while an installment agreement is in effect and you are current on filings.
Failure-to-file penalty: 5% per month up to 25% of unpaid tax — this applied before you filed but does not continue once you file.

A licensed CPA can also evaluate whether you qualify for penalty abatement (first-time abatement or reasonable cause) to reduce your total balance before entering a payment plan.

Working With a CPA vs. Applying Directly

You can apply for a streamlined installment agreement yourself at irs.gov/opa with minimal risk. However, working with a CPA is strongly recommended when:

Your balance exceeds $25,000–$50,000
You have unfiled returns for multiple years
The IRS has already filed a Notice of Federal Tax Lien
You have received CP504 (Notice of Intent to Levy)
You are also evaluating whether an offer in compromise may be more favorable
You are a business owner with payroll tax issues or trust fund recovery penalty risk

A CPA holds Power of Attorney (Form 2848) and communicates with the IRS on your behalf. You do not need to speak with the IRS directly at any point in the process.

What Happens If You Default

Defaulting on an installment agreement is serious. The IRS will send CP523, giving you 30 days to cure the default. If you do not respond:

The installment agreement is terminated
The IRS resumes full collection authority, including bank levies and wage garnishments
You may still request one reinstatement, but the IRS may require updated financial information
If a lien was previously released or subordinated, the IRS may refile it

If you miss a payment or anticipate missing one, contact your CPA immediately. A proactive call to the IRS before default almost always produces a better outcome than waiting for the CP523.

Frequently Asked Questions

Learn about all IRS resolution options including offers in compromise, penalty abatement, and audit representation on our IRS Tax Resolution Services page.

Need Help With Your IRS Payment Plan?

A licensed CPA can evaluate your full IRS situation, pull your transcripts, and negotiate the best possible payment arrangement — so you can stop the penalties from growing and get back on track.