An Installment Agreement allows taxpayers to pay their tax debts over time in monthly installments. It’s an alternative to paying the full amount owed upfront. To qualify, you must be current with filing all required tax returns and cannot have the ability to pay the debt in full. The IRS will determine the monthly payment amount based on your financial situation. Interest and penalties continue to accrue until the debt is paid in full. According to the 2025 Inflation Adjustment, the set-up fee for Installment Agreements ranges from $0 to $105, depending on your income level and payment method.
W