What is an Installment Agreement?
If you owe the IRS money, but can't pay it in one lump sum, the IRS might allow you to pay according to an "Installment Agreement." Installment agreements allow the payment of your debt in smaller, more manageable amounts. Usually, equal monthly payments must be made in monthly amounts large enough to fully pay the taxes you owe within a 10-year collection period, subject to some limitations. However, installment agreements also take into consideration your ability to pay the total amount due within the time left in the 10-year period. If you won't be able to pay your tax bill in full by the end of the collection period, but can pay some of the tax you owe, the IRS might work with you on other options, such as a partial payment installment agreement. To be eligible for an installment agreement, you must file all required returns. If you are an employer, you must be current with federal tax deposits.
Other Tax Litigation FAQs
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What Rights do Taxpayers Have When Dealing With the IRS?
A: IMost people consider any dealings with the IRS to be very stressful and frustrating. Keep in mind that taxpayers have important rights when dealing with the … More -
Q:
What is the IRS Appeals Office?
A: If you disagree with the IRS findings in your case, you can appeal your case to the Appeals Office of the IRS. The local Appeals Office is separate from and … More -
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What Protections are Taxpayers Entitled to When They Have a Dispute with the IRS?
A: When taxpayers have a dispute with the IRS, they are entitled to the following minimum protections from the Appeals Office: Appeal disputes arising under the Internal … More -
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How Does the IRS Determine Which Tax Returns to Audit?
A: According to the IRS, tax returns are selected to be audited in one of two ways: (1) the IRS uses computer programs to identify returns that may have incorrect … More -
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What is an Offer in Compromise?
A: An "Offer in Compromise" (OIC) is an arrangment made with the IRS to settle unpaid tax accounts for less than the full amount of the balance due. This … More -
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Which Taxpayers Qualify to Make an Offer in Compromise to the IRS?
A: The Offer in Compromise program is an option for taxpayers who can't pay the tax they owe, either in a lump sum or through an installment agreement, and have … More -
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What is a Partial Payment Agreement with the IRS?
A: When you can't pay all the tax you owe to the IRS in a lump sum, you may be able to work out a payment plan to pay what you owe. If the amount you owe is so … More -
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What is Innocent Spouse Relief?
A: As set forth in more detail in IRS Publication 971, under the law, spouses are jointly and individually responsible for any tax, interest, and penalties on a … More -
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How do I Apply for Innocent Spouse Relief?
A: To apply for Innocent Spouse relief, file Form 8857, "Request for Innocent Spouse Relief," and attach a statement explaining why you qualify for … More -
Q:
My Employer Received an IRS Wage Garnishment Order, Can I Stop It?
A: If your employer has received an order from the Internal Revenue Service to garnish your wages for back taxes, there are some steps you may be able to take to stop … More
Tax Litigation Sub-categories
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IRS Tax Problem
Student Loan Interest Deductions |
Tax Deductions
Taxpayer Identification Number |

