--- title: "Installment agreement: Definition and Sources | Tax Glossary" description: "An installment agreement is an IRS payment plan that lets a taxpayer pay a tax balance over time instead of all at once." url: https://wallacecpa.multisites.ai/glossary/installment-agreement publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- IRS notices # Installment agreement An installment agreement is an IRS payment plan that lets a taxpayer pay a tax balance over time instead of all at once. An installment agreement is a deal with the IRS to pay what you owe over an extended period. The IRS says to request one if you expect to pay in full within that time. Interest and penalties keep adding up until the balance is paid, so paying early saves money. You can apply online, by phone or with Form 9465. Setup fees can apply. If you cannot meet the plan, the IRS can default it and move toward a [tax levy](https://wallacecpa.multisites.ai/glossary/tax-levy). Taxpayers who cannot pay even with a plan may look at an [offer in compromise](https://wallacecpa.multisites.ai/glossary/offer-in-compromise). The [IRS problems page](https://wallacecpa.multisites.ai/services/irs-problems#payment-plans) compares the paths. [Wallace CPA can helpIRS problem resolution](https://wallacecpa.multisites.ai/services/irs-problems) ## Related terms - [Offer in compromise](https://wallacecpa.multisites.ai/glossary/offer-in-compromise) - [Tax lien](https://wallacecpa.multisites.ai/glossary/tax-lien) - [Tax levy](https://wallacecpa.multisites.ai/glossary/tax-levy) - [Penalty abatement](https://wallacecpa.multisites.ai/glossary/penalty-abatement) ## Sources 1. [IRS: Payment plans; installment agreements](https://www.irs.gov/payments/payment-plans-installment-agreements) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092