Installment Agreement
TaxGlossary term
Definition
A payment plan with the IRS that allows taxpayers to pay their tax debt over time in monthly installments. Various types are available depending on the amount owed, and interest and penalties continue to accrue on the unpaid balance.
Related terms
- Tax LienA legal claim the government places on your property when you fail to pay a tax debt. It protects the government's interest in all your assets, including real estate, personal property, and financial accounts. It can damage your credit score.
- Offer in CompromiseAn agreement with the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. The IRS considers ability to pay, income, expenses, and asset equity when evaluating offers. Acceptance rates are relatively low.
- Tax LevyA legal seizure of property or assets by the IRS to satisfy a tax debt after liens have been placed and multiple notices sent. The IRS can levy wages, bank accounts, Social Security benefits, and other income or assets.
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