| This agreement allow you to pay your
full debt in smaller, more manageable
amounts. Installment agreements generally
require equal monthly payments. The amount
of your installment payments and the number
you make will be based on the amount you owe
and your ability to pay that amount within
the time we can legally collect payment from
you. You should be aware, however, that an
installment agreement is more costly than
paying all the taxes you owe now. As with
most revolving credit arrangements, we
charge interest and penalties on the unpaid
portion of the debt.
Another cost associated with an
installment agreement is a user fee. This is
a one-time fee (currently $43) we charge to
set up the agreement. If you don't meet the
terms of the agreement throughout the life
of the agreement, we charge an additional
fee of $24 to reinstate it.
If you want to pay off your tax debt
through an installment agreement, call the
number shown on your bill. If you owe:
- $25,000 or less in tax, we'll tell
you what you need to do to set up the
agreement
- More than $25,000, we may still be
able to set up an installment agreement
for you, but we may also ask for
financial information to help us
determine your ability to pay
Even if you set up an installment
agreement, we may still file a Notice of
Federal Tax Lien to secure the government's
interest until you make your final payment.
Note: We can't take any
collection actions affecting your property
while we consider your request for an
installment agreement, while your agreement
is in effect, for 30 days after we reject
your request for an agreement, or for any
period while you appeal the rejection.
If you arrange for an installment
agreement, you can pay with:
- Personal or business checks, money
orders, or certified funds (all made
payable to the U.S. Treasury)
- Payroll deductions your employer
takes from your salary and regularly
sends to IRS
- Electronic transfers from your bank
account or other similar means
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