IRS Installment Agreements

When you cannot pay the taxes you owe, you can establish an installment agreement with the IRS. This allows you to pay down the balance over time. 

Requesting an Installment Agreement

An installment agreement can be requested by

Cost to Enter into An Installment Agreement

  • If the agreement is approved, a one-time user fee will be charged.  The amount of the fee will vary. 

How do I manage my plan to avoid default?

In order to avoid default of your payment plan, make sure you understand and manage your account.

  • Pay at least your minimum monthly payment when it's due.
  • File all required tax returns on time and pay all taxes in-full and on time (contact the IRS to change your existing agreement if you cannot).
  • Your future refunds will be applied to your tax debt until it is paid in full.
  • Make all scheduled payments even if we apply your refund to your account balance.
  • When paying by check, include your name, address, SSN, daytime phone number, tax year and return type on your payment.
  • Contact the IRS if you move or complete and mail Form 8822, Change of Address (PDF).
  • Confirm your payment information, date and amount by reviewing your recent statement or the confirmation letter you received. When you send payments by mail, send them to the address listed in your correspondence.

There may be a reinstatement fee if your plan goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you received a notice of intent to terminate your installment agreement, contact us immediately. We will generally not take enforced collection actions:

  • When a payment plan is being considered;
  • While a plan is in effect;
  • For 30 days after a request is rejected or terminated, or
  • During the period the IRS evaluates an appeal of a rejected or terminated agreement.
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