Installment Agreements

A federal tax installment agreement is a payment plan that allows an individual or business who owes money to the Internal Revenue Service (IRS) to pay off the debt in smaller, more manageable monthly payments instead of paying the full amount at once. This type of agreement is also known as a "payment plan" or a "tax payment plan".

With a federal tax installment agreement, you can choose to pay off your tax debt over a specified period of time, typically ranging from 120 days to 72 months. The amount and frequency of your payments will be based on your ability to pay and the amount of your debt. You can apply for a federal tax installment agreement online, by mail, or by telephone.

It's important to note that interest and penalties may continue to accrue on your tax debt while you are making payments under a federal tax installment agreement. In addition, if you do not make your payments as agreed, the IRS may take enforcement action against you, such as garnishing your wages or seizing your bank account.