Does the IRS offer installment payment agreement options?


Quick Answer

A taxpayer who is unable to pay his tax bill immediately can request that the IRS set up a monthly payment plan through which the amount due is paid in installments, according to the IRS. These plans are generally approved, but there are fees and interest added.

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Full Answer

For an individual to be eligible to apply for an online tax payment installment agreement, as of 2015, he must owe $50,000 or less in taxes, interest and penalties, and must have filed all of the required tax returns, explains IRS.gov. If a person does not meet these requirements, it may still be possible to set up an installment agreement after completing IRS Form 9465 and Form 433-F. For small businesses to qualify to set up an installment agreement, they must owe $25,000 or less in payroll taxes and must file all required tax returns.

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