Tax Installment Agreements: How Many Are There?

An installment agreement plan is one of the most effective ways to pay off any taxes that you may owe the IRS. In general, the IRS offers four different types of installment agreements for those who want to pay their debt in smaller amounts. These include guaranteed installment agreements, streamlined installment agreements, partial payment installment agreements, and non-streamlined installment agreements.

The type you choose, including how you get started, depends heavily on your current financial standing and how much you owe. For instance, if your tax debt is less than $10,000, you can choose a guaranteed installment agreement. All you have to do is complete Form 9465 to request an installment agreement and mail it to the IRS. Meanwhile, if you owe the IRS $50,000 or less, and you agree to pay the balance in 72 months or less, you can choose a streamlined installment agreement.

In choosing the right type of installment agreement for your situation, always seek the advice of a tax professional, such as a tax attorney, certified public accountant (CPA), or enrolled agent. Such specialists can expertly analyze your situation and help you arrive at the best type of program for your needs. Aside from that, they can also help you manage the process, and even talk to the IRS on your behalf.

 

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