Applying for an Installment Agreement
An Installment Agreement with the IRS means you are allowed to make smaller periodic payments over time if you cannot pay the full amount at once. You may either apply for an Installment Agreement
Online. Using the application for Online Payment Agreement at http://www.irs.gov/Individuals/Online-Payment-Agreement-Application
Online applications are recommended if you owe $50,000 or less of individual income tax, penalties, and interest. If you are a business and owe $25,000 or less in payroll taxes, penalty and interest, you can also use the Online Payment Agreement to request a payment agreement.
By mail. Complete Form 9465 Installment Agreement Request. In addition, if you wish to make your payments by payroll deduction, complete Form 2159 Payroll Deduction Agreement. If you owe more than $50,000 you will also need to complete Form 433F Collection Information Statement.
In person. At your local IRS office near you. Visit www.irs.gov/localcontacts
If you request a payment plan, you can reduce the accrual of penalties and interest by making voluntary payments according to the proposed plan’s terms until you are notified whether the IRS has accepted your payment plan request. Their acceptance of your interim payments does not mean they have approved your request. You will be notified in writing once they have made their decision.
With an Installment Agreement, you can pay by direct debit, through payroll deductions, electronic funds transfer or check. There is a user fee for Installment Agreements. If you meet the low-income guidelines, you can pay a reduced user fee. Form 13844 Application for Reduced User fee for Installment Agreements. You do not need to submit the user fee for an Installment Agreement with the application, the fee can be taken from the initial payments once the Installment Agreement is accepted.
To be eligible for an Installment Agreement, you must file all required tax returns. Prior to approving your Installment Agreement request, the IRS may ask you to complete a Collection Information Statement Form 433F, 433a, and/or 433B and provide proof of your financial status.
If the IRS approves your request, you will still be charged interest and penalties until you pay the amount or balance due in full, and the IRS may file a Notice of Federal Tax Lien. If they reject your Installment Agreement request, you may request that the Office of Appeals review your case. For more information, see IRS Publication 1660, Collection Appeal Rights.