For both types, you must pay the debt in full within 72 months (six years) and within the deadline for the IRS to collect the tax, but you won't need to file a financial statement. Submit your request online through the online payment agreement tool or by phone or by mail by submitting Form 9465, Request for an Installment Agreement. Your specific tax situation will determine what payment options are available to you. Payment options include a full payment, a short-term payment plan (paid in 180 days or less), or a long-term payment plan (installment agreement) (monthly payment).
IRS short-term payment plans last a maximum of 120 days and are only available to individual taxpayers. The benefit of these payment plans is that they don't involve installation fees or other charges. You only have to pay penalties related to underpayment or late payment, if applicable, and interest. In general, you can choose what you pay each month.
That is, the IRS will ask you how much you can pay. However, if you have a long-term repayment plan, you should choose a payment amount that pays off your debt within 72 months. The Fresh Start program allows taxpayers to settle their tax debt for less than they owe, giving them a new opportunity to pay their future taxes. As part of its Fresh Start program, the IRS recently adopted new rules that make it easier to obtain an installment agreement.
