An Installment Agreement in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

is an

Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory ta ...

(IRS) program which allows individuals to pay

tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...

debt in monthly payments. The total amount paid can be the full amount of what is owed, or it can be a partial amount. There are several different kinds of Installment Agreements: Guaranteed, Streamline, Partial and Full Pay. Usually, one must owe less than ''$50,000'' to get a streamlined installment agreement. The payment amount is the total amount of debt divided by 72 months. If the amount owed is less than ''$25,000'' one can complete the Form 9465. If you owe more than 25,000 but less than $50,000 you need to submit a 433-D. If you owe more than $50,000 you will need to submit a financial statement or 433f or 433a. If you owe business taxes like 941 or 940 taxes your payment plan will be 24 months not 72 months. There are benefits to having an installment agreement with the IRS in that in most cases you can avoid a tax lien if you have a direct debit installment agreement.

Requirements

*Individual has to file all minimum required

tax returns A tax return is the completion of documentation that calculates an entity or individual's income earned and the amount of taxes to be paid to the government or government organizations or, potentially, back to the taxpayer. Taxation is one of ...

. *Must owe $50,000 or less. * Monthly payment cannot be less than $25 a month. *Keep a check on future refunds that can applied for tax refunds until tax debt is paid in full.

References

by Opem Tax Resolution Internal Revenue Service {{Tax-stub