Installment Agreement Types
There are three main types of installment agreements.
- Streamlined Installment Agreements
- Partial Payment Installment Agreements
- Payment plans set at Taxpayer's monthly collectibility
Streamlined Installment Agreement
The Streamlined Installment Agreement allows the taxpayer to pay off the amount owed over a set number of months- typically 72. This option is generally used for those who owe amounts under $50,000.
Partial Payment Installment Agreements
The Partial Payment Installment Agreement plan is used when the taxpayer's monthly collectibility cannot payoff the balance owed over the life of the balance-usually 10 years from date of assessment.
Payment plans set at Taxpayer's monthly collectibility
This plan is typically used for balances over $50,000 and will fully pay the balance owed before the balance expires. The amount of the monthly payment is set at the taxpayers monthly collectibility.