Installment Agreement Request

An Installment Agreement Request is a document used to propose a payment plan to the IRS or other tax authorities when you’re unable to pay your tax debt in full. Key aspects include:

1. Taxpayer’s personal and financial information

2. Amount of tax owed

3. Proposed monthly payment amount

4. Length of the payment plan

5. Reason for inability to pay in full

6. Financial statement (may be required for larger debts)

This agreement allows taxpayers to spread their tax liability over time, avoiding more severe collection actions. It’s typically used for personal income taxes but can apply to other tax types. The IRS generally approves reasonable requests, especially for smaller debts. However, interest and penalties may continue to accrue during the repayment period. Submitting this request can provide relief and a structured approach to resolving tax debt, but it’s important to stick to the agreed payment schedule to avoid defaulting on the agreement.