Installment Agreement (IA)

An Installment Agreement (IA) is a payment plan that allows taxpayers to pay their tax debt over time through monthly payments. This option is available for taxpayers who cannot afford to pay their entire tax debt in a single payment. The IRS offers several types of Installment Agreements, depending on the amount owed and the taxpayer’s financial situation.

Types of Installment Agreements include:

1. Guaranteed Installment Agreement: Available to taxpayers who owe less than $10,000 and can pay off the debt within three years.
2. Streamlined Installment Agreement: For taxpayers who owe up to $50,000, allowing them to repay the debt over 72 months.
3. Partial Payment Installment Agreement (PPIA): Allows taxpayers to make monthly payments based on their financial situation, often resulting in paying less than the full amount owed.

To apply for an Installment Agreement, taxpayers must submit Form 9465 or request it online through the IRS website. Once approved, taxpayers must make regular monthly payments and remain current with future tax obligations.