What It Is
An installment agreement is a monthly payment plan with the IRS. While you stay in good standing, it generally stops enforced collection like levies and garnishment. The right type depends on how much you owe. Smaller balances, generally under fifty thousand dollars, can often be set up online with little documentation and paid over as long as seventy two months. Larger balances need a financial statement so the IRS can base the payment on what you can afford. There is a setup fee, lower if you pay by direct debit and reduced or waived for low income taxpayers.
Is This You?
- You can afford a monthly payment but not the full balance now
- You want to stop or prevent a levy or garnishment
- You are filed and current on this year's taxes
What You Can Do
These steps get a plan set up and keep it from defaulting.
- File any missing returns so you are current
- Confirm your total balance from your transcripts
- Pick the plan type that fits your balance
- Set a monthly amount you can keep up every month
- Choose direct debit for the lower setup fee
- Apply online, by phone, or with Form 9465
- Budget to stay current on future taxes so the plan holds
Get the Installment Agreement Checklist
The full checklist as a printable PDF, free. Enter your email and we will send it over.
Want the Full Walkthrough?
Installment Agreement Guide
Which plan you qualify for, Form 9465, and how to keep the agreement from defaulting once it is set.
Owe a large balance or unsure which plan fits? Send us your situation for a free review.