Installment Agreement

If you cannot pay the full amount due as shown on your return, you can ask to make monthly installment payments.

• There is a one time IRS fee of $105.00, or $52 for direct debit agreements (reduced fee of $43 availble to low income taxpayers)
• Interest is charged on any tax not paid by its due date
• You will be charged a late payment penalty unless you can show reasonable cause for not paying the tax by the due date 
• Penalty will be charged until it reaches 25% of the original balance due and interest will be charged until the account is fully paid.

Guaranteed Installment Agreement

Your request for an installment agreement generally cannot be turned down if the tax you owe is not more than $10,000 and all three of the following
apply.

• During the past 5 tax years, you (and your spouse if filing a
  joint return) have timely filed all income tax returns and paid any
  income tax due, and have not entered into an installment
  agreement for payment of income tax.

• The IRS determines that you cannot pay the tax owed in full
  when it is due and you give the IRS any information needed to
  make that determination.

• You agree to pay the full amount you owe within 3 years and
  to comply with the tax laws while the agreement is in effect.

If you owe more than $25,000 in combined tax, penalties, and interest a Collection Information Statement (Financial Statement) will need to be completed.