A summary of an installment agreement is a written agreement between a debtor and a creditor that outlines the terms and conditions for the repayment of a debt in regular installments over a specified period of time. The debtor agrees to make consistent payments towards the debt until it is fully paid off, while the creditor agrees to accept these payments and not take any further legal action against the debtor. This type of agreement is commonly used for individuals or businesses who are unable to pay off their debts in a lump sum but can afford to make regular payments over time.
An installment agreement is a payment plan that allows a taxpayer to pay off their tax debt in monthly installments.
To qualify for an installment agreement, you must owe less than $50,000 in combined individual income tax, penalties, and interest, and have filed all required tax returns.
Yes, you can set up an installment agreement online through the IRS website using the Online Payment Agreement tool.
The fees for setting up an installment agreement vary depending on your income level and how you choose to make your payments. Low-income taxpayers may qualify for reduced fees.
Yes, you can request changes to your installment agreement, such as adjusting the monthly payment amount or the due date.
If you miss a payment on your installment agreement, the IRS may send you a reminder notice or take enforcement actions, such as filing a Notice of Federal Tax Lien or issuing a levy.
Yes, you can pay off your installment agreement early without any penalties.
Yes, businesses can also set up installment agreements for their tax debts.
If you default on your installment agreement, the IRS may terminate the agreement and take further collection actions to recover the remaining tax debt.
Yes, if your request for an installment agreement is denied, you have the right to appeal the decision through the IRS Office of Appeals.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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