Owing the IRS $100,000: the budget test behind the plan
Choose your state and county, the household size and gross monthly income. The calculator applies the IRS Collection Financial Standards and shows the income left after allowable expenses, which is the figure the IRS starts from when it sets a payment on a balance this size.
- Short-term plan
- Under $100,000 only
- Simple Payment Plan
- Up to $50,000 only
- Standards in force since
- June 29, 2026
- Passport threshold, 2026
- $66,000
Allowable monthly expenses
$6,427
Remaining monthly income: $3,073. That is the least the IRS expects as a payment when it asks for a financial statement.
| Food, clothing and other items | $1,857 |
| Housing and utilities (standard $2,427) | $2,250 |
| Vehicle ownership and operating | $650 |
| Health care out of pocket and insurance | $520 |
| Taxes, child care, court orders | $1,150 |
Maricopa County, Arizona; car costs at the Phoenix figure. IRS Collection Financial Standards effective June 29, 2026.
Compiled by Radif Partners · How we calculate · rules and rates read on irs.gov · not tax advice, the IRS decides
At $100,000 a balance is past both thresholds that make IRS plans easy. The short-term plan is for combined balances under $100,000, and the Simple Payment Plan for $50,000 or less. What remains is an installment agreement requested by phone, mail or in person with a financial statement, Form 433-F or 433-H. The IRS compares your expenses with its Collection Financial Standards, in force since June 29, 2026: a national allowance for food and clothing, county figures for housing and transportation, a health care allowance per person. The income left over is the payment it expects. For a household of 3 in Maricopa County, Arizona, earning $9,500 a month, the allowable expenses come to $6,427, leaving $3,073. Clearing $100,000 over 10 years takes $1,263 a month at the current rate. The balance is also above the $66,000 passport threshold of 2026.
Past the two online limits
Below $50,000, a plan is a few clicks. Below $100,000, a short-term plan of 180 days is available without a fee. At $100,000, neither applies: the short-term limit is strictly below this amount. The request goes through the phone number on the notice, by mail with Form 9465 and Form 433-F, or in person, and the set-up fee is the higher tier, $107 with direct debit or $178 without. The IRS decides how much it needs each month, using what the statement shows.
What the statement and the standards produce
The Collection Financial Standards work in two ways. National Standards for food, clothing and other items, and for out-of-pocket health care, are allowed in full for the household size without asking what was actually spent. Local Standards for housing and utilities, by county, and for vehicle ownership and operating costs, by region or metropolitan area, are caps: the IRS generally allows the amount actually spent or the standard, whichever is less. Current taxes, health insurance, court-ordered payments and child care are added on top. The housing standards page lists the county figures.
| Allowable expense | Monthly amount |
|---|---|
| Food, clothing and other items (national) | $1,857 |
| Housing and utilities (paid $2,250, standard $2,427) | $2,250 |
| Vehicle ownership and operating, one car | $650 |
| Out-of-pocket health care and insurance | $520 |
| Current income and payroll taxes | $1,150 |
| Total allowed | $6,427 |
| Remaining from $9,500 of gross income | $3,073 |
Your county and income
Allowable monthly expenses
$6,127
| Food, clothing and other items | $1,857 |
| Housing and utilities (standard $2,427) | $2,100 |
| Vehicle ownership and operating | $650 |
| Health care out of pocket and insurance | $520 |
Form 433-F itself is four pages. It starts with the county of residence and the number of people in the household, split between those under and over 65, because both drive the standards. It then asks for bank accounts and lines of credit, real estate, other assets such as vehicles and whole life policies, credit cards, employment and other household income for the taxpayer and spouse, and monthly living expenses line by line. The IRS can ask for statements that back up each figure, and the figures it accepts are the ones the payment is built on.
From remaining income to a monthly payment
The remaining monthly income is the floor the IRS works from. If it is enough to clear the balance within the collection period, the plan is a full-pay installment agreement, and the IRS can ask for the whole remaining income even if a smaller payment would also do the job in time. The table sets the example household against three terms.
| Term | Payment that clears the balance | Interest and penalty added | Within the $3,073 left? |
|---|---|---|---|
| 72 months | $1,814 | $30,544 | Yes |
| 84 months | $1,616 | $35,687 | Yes |
| 120 months | $1,263 | $51,416 | Yes |
For this household, a 72-month plan fits inside the remaining income. The IRS could still ask for the full $3,073 a month, which would shorten the plan and cut the interest. Actual expenses above the standards are allowed only with documentation that the standards would leave the household without basic living expenses.
Bringing the balance under a threshold first
Both limits are measured on the balance at the time of the request, so a payment made first can change the route. Any payment at all brings $100,000 under the short-term limit, but clearing the rest within 180 days is out of reach for most households. Getting down to the Simple Payment Plan takes a payment of $50,000 or more, after which the plan is available online with no financial statement and a $29 direct debit fee. The statement route needs no such payment, at the price of the budget review.
Three things that come with six figures
The first is passport certification. Debt of more than $66,000 in 2026, with a lien filed or a levy issued and nothing arranged, can be certified to the State Department, which can then deny or revoke a passport; a plan, a pending request or an accepted offer excludes the debt. The passport page has the details. The second is speed: when the IRS bills additional tax of $100,000 or more, the date to pay is generally 10 business days after the notice instead of 21 calendar days. The third is the collection statement itself, which asks about home equity, retirement accounts and vehicles that the simple plans never look at.
When the budget does not carry it
If the remaining income cannot clear the balance in time, the IRS considers a partial payment agreement. If assets and future income together fall short of the balance, an offer in compromise may be possible, and if there is no remaining income at all, currently not collectible status. Each starts from the same statement and the same standards. The IRS makes every one of these decisions; the calculator only reproduces the published arithmetic.