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Simplified Method – Pay full amount in 120 days – Arrange at 800-829-1040 or apply online.
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Streamlined Approval Process
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Amount owed does not exceed $50,000 and Taxpayer will pay it off within 72 months
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Terms
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Make all payments on time and in full
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All required tax returns must have been filed
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File all future tax returns on time
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Have enough withholding or estimated tax payments so no tax is due with timely filed future returns
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User Fee: Ranges from $31 to $225 depending on application and payment methods
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Guaranteed Installment Agreement
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Does not owe more than $10,000
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During the prior five years
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Filed and paid tax timely
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Did not enter into an installment agreement
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Cannot pay the tax in full when due
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Agree to pay balance in three years
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Interest - Current rate compounded daily
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Penalties – Late payment reduced to 0.25% per month
Related IRC and IRS Publications and Forms
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Form 9465 – Installment Agreement (liability up to $50,000)
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Form 433-A – Collection Information Statement for Wage Earners and Self-Employed
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Form 433-F – Collection Information Statement
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Form 2159 – Payroll Deduction Agreement
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Form 13844 - Application for Reduced User Fee for Installment Agreements.
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