If you cannot pay the full amount you owe shown on your tax return or on a notice sent to you by the IRS, you can make monthly payments through an installment agreement. Before you apply for any type of payment agreement, you must file all required tax returns. You may be eligible for a guaranteed installment agreement.
To qualify for a guaranteed installment agreement with the IRS, the taxpayer must meet the following conditions:
- Owe less than $10,000, (not including interest and penalties);
- In the previous five years, the taxpayer has filed tax returns, paid taxes owed, and has not entered into an installment agreement;
- The taxpayer is unable to pay the tax liability when due;
- The tax liability will be paid off within three years, and
- The taxpayer must pay at least the minimum monthly payment (tax liability, interest and penalties divided by 30)