Installment Agreement IA

Question 1

Definition of Installment Agreement: What is an Installment Agreement?

Answer 1

An agreement with the IRS to pay tax liabilities over time through scheduled monthly payments. (IRC § 6159)

Question 2

Types of Installment Agreements: What are the main types of Installment Agreements?

Answer 2

Guaranteed, Streamlined, Partial Payment, Non-Streamlined. (IRC § 6159; Internal Revenue Manual (IRM) 5.14.1)

Question 3

Eligibility for Installment Agreement: Who is eligible for an Installment Agreement?

Answer 3

Generally available to individuals and businesses that cannot pay their tax liability in full. (IRC § 6159)

Question 4

Application Process for Installment Agreement: How does one apply for an Installment Agreement?

Answer 4

Through IRS Form 9465, online, or by phone. (IRM 5.14.1)

Question 5

Terms of Payment in Installment Agreement: What are the terms of payment?

Answer 5

Monthly payments, amount and duration vary based on type of agreement and financial situation. (IRC § 6159; IRM 5.14.1)

Question 6

Penalties and Interest with Installment Agreement: How are penalties and interest handled?

Answer 6

Interest and penalties continue to accrue on unpaid balances, though at a reduced failure-to-pay penalty rate. (IRC §§ 6601, 6651; IRM 20.1.2)

Question 7

Defaulting on Installment Agreement: What causes default, and what are the consequences?

Answer 7

Missed payments, new tax liabilities, etc.; may lead to termination of agreement and enforced collection action. (IRC § 6159; IRM 5.14.11)

Question 8

Liens in Installment Agreement: What is the IRS’s policy on liens in an Installment Agreement?

Answer 8

Federal tax liens may still be filed or remain in place. (IRC § 6321; IRM 5.14.1)

Question 9

Appealing Installment Agreement Decisions: How can one appeal decisions related to Installment Agreements?

Answer 9

Rejections, modifications, or terminations can be appealed through the IRS Collection Appeals Program. (IRM 5.14.9)