Setting Up an Installment Agreement

What is an Installment Agreement?

An Installment Agreement is a payment plan that allows you to pay your tax debt over time in monthly installments. It's one of the most common ways to resolve tax debt when you can't pay the full amount immediately.

Types of Installment Agreements

• Guaranteed Installment Agreement: For balances under $10,000
• Streamlined Installment Agreement: For balances between $10,000 and $50,000
• Partial Payment Installment Agreement: When you can't pay the full amount within the collection statute
• Non-Streamlined Installment Agreement: For more complex situations

Eligibility Requirements

To qualify for an Installment Agreement, you must:

• Have filed all required tax returns
• Not be in bankruptcy
• Not have defaulted on a previous agreement
• Be able to make the proposed monthly payments

Setting Up Your Agreement

1. Determine which type of agreement you qualify for
2. Calculate your monthly payment amount
3. Apply online through the IRS website or by mail
4. Make your first payment
5. Continue making payments until the debt is paid in full

Important Considerations

• Interest and penalties continue to accrue until the debt is paid in full
• You must file all future tax returns on time
• You must pay all future taxes on time
• The IRS may file a Notice of Federal Tax Lien
• Defaulting on the agreement can result in collection action