IRS Installment Agreement - Pay Your IRS Back Taxes in Monthly Payments!

An IRS Installment Agreement is the most popular type of IRS payment plan, allowing you to pay off your entire tax debt with monthly payments. How much you pay and over what period of time depend on the type of IRS Installment Agreement you get: a Full Financial Disclosure Agreement or a Non-Disclosure Agreement.

IRS Installment Agreement: Non-Disclosure

The Non-Disclosure IRS Installment Agreement is only available to those with an IRS tax debt below $25,000, and you must agree to pay your back tax debt (including accrued penalties and interest) in full within 5 years, assuming there is at least 5 years left on your statute of limitations.

IRS Installment Agreement: Full Disclosure

• Calculate your monthly disposable income, and therefore determine your monthly payment
• Determine how long your Full Disclosure IRS Installment Agreement will last. For example, if the IRS calculates that you can afford pay off your tax debt within 1 year, your agreement will be for 1 year. If you have enough to pay it off within 2 years, your agreement will be for 2 years, and so on, up to the expiration of your collections statute.

Another important point about this particular agreement is that if your income increases, so will your monthly payment. The IRS reasons that a raise in income is a raise in disposable income. Therefore, they will increase your monthly payment to collect on your tax debt faster.

Need an IRS Installment Agreement? Start Here!	What is Your Total Tax Debt? ->    $800,000 +    $400,000 to $799,999    $200,000 to $399,999    $100,000 to $199,999    $90,000 to $99,999    $80,000 to $89,999    $70,000 to $79,999    $60,000 to $69,999    $50,000 to $59,999    $40,000 to $49,999    $30,000 to $39,999    $20,000 to $29,999    $10,000 to $19,999    $0 to $9,999

IRS Installment Agreement: The Application

Once approved for an IRS Installment Agreement, you'll be responsible for the one-time user fee of $150, or $52 if you agree to make your monthly payments via EFTPS (electronic funds withdrawal). If your income is below a certain level, you may qualify for an even more reduced fee of $43. If the IRS feels you don't qualify for this reduction, you can request the reduced fee with Form 13844, Application for Reduced User Fee for Installment Agreements.

IRS Installment Agreement: Payments

• Check or money order made out to "United States Treasury"
• Credit card
• EFTPS

It's important to note that while you're in an IRS Installment Agreement, you must be up-to-date with your tax filings. Failing to do so is a violation of the contract's terms, causing you to default (discussed later). Also, any tax refund due to you while you're in the Installment Agreement will be withheld and applied to your tax debt (and you'll still be responsible for your regular monthly payment on top of that).

IRS Installment Agreement: Penalties & Interest

IRS Installment Agreement: Defaulting

An IRS Installment Agreement can save you from a big financial hit by spreading out your back tax payments. If you need help setting up an IRS Installment Agreement, call (800) 590-4524 or fill out the form below. You'll connect with a tax debt resolution company with in-house tax attorneys and enrolled agents that will defend you from the IRS. Call now for help with your IRS Installment Agreement!