If a taxpayer is financially unable to pay his/her tax debt in full immediately, they can make monthly payments through an Installment Agreement (IA). The monthly payments are based on how much you owe and how much you can afford to pay each month. An IA is a great solution for taxpayers who have substantial disposable income each month which can allow then to make affordable monthly payments. Interest will continue to grow and there may be applications fees involved, but these pay plans can help you resolve your inability to fully pay your taxes in one payment.
Installment Agreement Guidelines:
- All tax returns must be filed.
- Full financial disclosure.
- Streamline IA: Pay plans set up quickly without full financial disclosure.
- Individuals that owe $50,000 or less can qualify for a streamline IA.
- Businesses that owe $25,000 or less can qualify for a streamline IA.