If you are not able to pay the Internal Revenue Service immediately or within 120 days, you may qualify to pay the IRS through a monthly installment agreement. It is important that you follow all terms of your installment agreement, including making all payments timely, while remaining current and compliant with all current filings and payments. Penalties and interest will continue to accrue while paying off an installment agreement, so it is still in the best interest of the taxpayer to pay off any amount due in full as soon as possible. If you have questions or need help with an installment agreement, call us at 1-800-408-3122 or email us at for a free consultation.

Understanding Installment Agreement

An installment agreement is an arrangement granted by the IRS. It indicates that the taxpayer can pay his or her outstanding taxes in equal monthly installments over an extended period of time. Do note that interest is applied to the balance owed.

instalment agreement irs

Why You Should Consider Installment Agreement?

 Installment agreement plans are more favorable than an asset seizure, bank levy, or wage garnishment. It allows you to pay off your tax liability over a period of time, not in a lump sum which can set you back pretty good. What’s more, the IRS will not conduct any collection activities during the installment agreement process. However, your agreement can go into default if you miss one payment or fail to pay the liability from future tax returns.

A major benefit of installment agreements is that the IRS will not file a tax lien against you for outstanding taxes due.

Partial Pay Installment Agreement

If the expiration date for irs collections expires before full payments can be made, you may qualify for a partial pay installment agreement.

Change existing installment agreement

If your situation has changed since getting an installment agreement, you may qualify for a revision of the payment on your existing installment agreement.

Currently Not Collectible

If a taxpayer can show the IRS that they cannot afford to make any payments now, they may qualify for IRS to place the account in a currently not collectible status.

installment agreements

Questions You Might Have

The Internal Revenue Service will allow you to set up an installment agreement online, by telephone or by filling out certain forms. Depending on the amount you owe, you can expect the IRS to ask detailed questions about your income and expenses, as well as bank account information.
You will continue to pay penalties and interest on the outstanding amounts due to the IRS. Because of this, if it is possible for you in your situation, it is usually better to find other sources to pay the IRS in full. In any event it is in your best interest to pay the debt in full as soon as possible to minimize penalties and interest you pay.
The Internal Revenue Service can still file a lien against property you own, so that they can secure their interest in your property against other creditors.
Under normal situations, the IRS will not normally levy your bank accounts when you are following the terms of a valid installment agreement you have in place with the IRS. It is very important that you follow the terms of the agreement once you have one in place, and be in contact with the IRS if for any reason you are unable to timely make a payment.
The Internal Revenue Service will accept payment by checks and money order as well as by credit card. The method the IRS prefers is to set up a direct debit from your bank account.
If you miss a payment with the IRS, you may receive a notice that the Internal Revenue Service plans to terminate your installment agreement and levy your assets. It is therefore in your best interests to immediately contact the IRS in an effort to make things right as soon as possible and keep your installment agreement in place.
If you miss a payment the IRS can terminate your installment agreement. They can also terminate your agreement if you fail to file your current return timely, or fail to pay your current obligations. It is therefore very important to stay current and compliant with the Internal Revenue Service, especially when you have an installment agreement in place.
If your installment agreement with the Internal Revenue Service is terminated, you have thirty days to appeal. You will still have an opportunity to request a reinstatement after that. If your appeal is rejected, it is still possible to appeal the rejection through the Collection Appeals Program.
Call us at 1-800-408-3122 or you can email us at for a free, no obligation consultation.

Case Studies

Doing the Right Thing, at the Right Time!