https://turbotax.intuit.com/tax-tip...payment-for-an-irs-installment-plan/L7UVpeNIZ
"If you owe less than $10,000 to the IRS, your installment plan will generally be automatically approved as a "guaranteed" installment agreement. Under this type of plan, as long as you pledge to pay off your balance within three years, there is no specific minimum payment required. For balances above $10,000, you may have to provide additional information in order to qualify."
"With a balance due above $10,000, you can qualify for a streamlined installment plan. While acceptance isn't guaranteed, the IRS doesn't usually require additional financial information to approve these plans. With a streamlined plan, you have 72 months to pay. A minimum payment does kick in, equal to your balance due divided by the 72-month maximum period."
https://resources.lawinfo.com/tax-law/what-happens-if-i-default-on-an-installment-a.html
"if a taxpayer falls behind on payments or stops paying entirely, the IRS can cancel the installment agreement and put the taxpayer into default. When this happens, the taxpayer receives a notice called a CP523. The notice will inform the taxpayer about the default and the action the IRS can take to recoup the taxes owed. Some of the options the agency has to collect the debt includes:
- Garnishment of wages
- Seizure of assets
- Freezing bank and investment accounts
It is rather obvious that defaulting on a payment arrangement with the IRS is not ideal. But there are things you can do to correct the default. The Internal Revenue Service offers advice on how to get your payment plan back on track with the CP523 notice. Some of the options on the notice include:
- Make the required payments to bring the agreement current.
- Contact the IRS and try to renegotiate the installment plan. You may have to provide proof that the payments are more than you can afford. Pay stubs, bank statements or other documentation may be required."
As for paying less than what he owes, the IRS won't let you if you haven't made all your estimated payments. DSP completely screwed himself out of any leniency.