An Installment Agreement in the United States is an Internal Revenue Service (IRS) program which allows individuals to pay tax debt in monthly payments. The total amount paid can be the full amount of what is owed, or it can be a partial amount.
There are several different kinds of Installment Agreements: Guaranteed, Streamline, Partial and Full Pay.
- Individual has to file all minimum required tax returns.
- Identify the maximum amount that can be paid monthly to settle debts. Monthly payment cannot be less than $25 a month.
- Keep a check on future refunds that can applied for tax refunds till tax debts are paid in full.
- Check on all other sources including loans, credit card and others to settle tax debt to keep minimum cost.
Source Wiki 2017