An installment agreement lets you pay your tax debt monthly instead of a lump sum. The IRS offers different plans based on how much you owe. Most taxpayers owing $50,000 or less qualify for streamlined plans without extensive documentation. Interest and penalties continue accruing, but payment plans stop collection actions like garnishments and levies.

• Pay taxes monthly instead of lump sum
• Stops IRS collection actions like levies and garnishments
• Interest and penalties continue until paid in full

You qualify if you've filed all required returns and can't pay in full. Short-term plans give you 180 days if you owe less than $100,000. Long-term plans let individuals owing $50,000 or less pay monthly for up to 72 months. Businesses owing $25,000 or less get 24-month plans.

• Must have filed all required tax returns
• Short-term plans for balances under $100,000
• Long-term plans for individuals owing $50,000 or less