Installment Agreement

An Instalment Agreement is a United States Internal Revenue Service (IRS) program that allows individuals to pay tax debt in monthly payments.

There IRS has several different kinds of Instalment Agreements; Guaranteed, Streamline, Partial and Full Pay. There are a number of requirements that have to be met before an instalment agreement can be granted to a tax payer.^[1]

Requirements

• Has to file all minimum required tax returns.
• Must owe $50,000 or less.
• Monthly payment cannot be less than $25 a month.^[2]
• Keep a check on future refunds that can applied for tax refunds until tax debt is paid in full.^[3]

References

1. "IRS Installment Agreement – It's In The Numbers". Open Tax advocates. July 28, 2021.
2. Payment Plans, Installment Agreements by IRS
3. "Pros and Cons of IRS Installment Agreements | IRS Payment Plan". 24 May 2018.