What Is an IRS Installment Agreement?

If you can't pay your tax bill in full, an IRS installment agreement lets you pay it off in monthly installments. You can apply online at IRS.gov if you owe $50,000 or less. Interest and late payment penalties continue to accrue while you're on the plan. Setting up a plan stops the IRS from taking more aggressive collection actions like levies. Making your payments on time is essential — defaulting cancels the agreement.