Installment Agreement

IRS Definition of Installment Agreement:

If you’re financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement.

More from H&R Block:

There are several types of IRS payment plans, called installment agreements, that you can set up if you can’t pay your taxes. If you enter into an installment agreement, it will cut your failure to pay penalty in half. However, the does charge a fee to set up an installment agreement.

Some installment agreements are simple payment arrangements that you or your tax pro can set up using the IRS Online Payment Agreement tool. Others are more complicated to request and can involve sending the IRS proof of your income and assets. In these cases, the IRS can limit your expenses to a “reasonable” amount when it’s calculating how much you can afford to pay every month.

The best type of installment agreement for your situation depends on the amount you owe, how fast you can pay it, and your financial circumstances. Find out which IRS installment agreement is best for you.

Or, learn all of the options you may have if you can’t pay your taxes.

We’re Here to Help

Your local H&R Block tax pro can look into your issue and deal with the IRS for you.

Schedule a Free Consultation

Or call 855-536-6504

Related Information

What To Do If You Can’t Pay Your Taxes

Learn about the different options when you can't pay or still owe money from a past return from the tax experts at H&R Block.

Beware of IRS Fees When You Can’t Pay Your Taxes

Many IRS payment arrangements come with fees. Learn how to pay the lowest fee when setting up a payment plan or offer in compromise with the IRS.

The IRS Offers Alternatives When You Can’t Pay Your Tax Bill

Get the facts from H&R Block about IRS payment options when you can't pay your tax bill, including short-term extensions, monthly payment plans, and more.

How to Figure Out Which IRS Payment Plan Is Best For You

If you owe taxes and you can’t pay them all, you have options. Read H&R Block's guide to the types of IRS installment agreements - and how to figure out which one is right for you.

How to Avoid IRS Liens and Levies

Liens and levies are tools the IRS uses to collect back taxes. Learn more about each one -- and how to avoid tax liens and levies by working with the IRS.

What To Do If You Can’t Pay Your Business Taxes

Learn how to request an IRS payment option, like an extension to pay or an IRS installment agreement, when your business owes taxes and can't pay.

The Four Types of IRS Penalty Relief – and How to Know What’s Best for You

Get the facts from H&R Block about the four types of IRS penalty relief, and which IRS penalty relief option may be best for your situation.