Installment Agreement Request

Installment Agreement Request

An Installment Agreement Request is a formal application made by a taxpayer to the Internal Revenue Service (IRS) or a state tax authority to pay their tax liabilities in manageable, smaller payments over a specified period instead of a lump sum.

This request typically involves submitting Form 9465 for individuals or similar forms for businesses, detailing the taxpayer’s financial situation and proposed payment plan. The IRS reviews the request based on the taxpayer’s ability to pay, and if approved, it allows the taxpayer to avoid immediate collection actions while fulfilling their tax obligations in installments. For example, a taxpayer who owes $5,000 may request to pay this amount in monthly installments of $500 over ten months.