a payment arrangement whereby the government allows a taxpayer to pay liabilities over time
a payment plan for the amount due and often includes reduced penalties
is an agreement by the taxpayer to pay a set amount each month to the IRS until the full liability (and interest) is paid. The amount is derived by figuring the difference between the taxpayer's necessary monthly living expenses and his net monthly income.
If you cannot pay your taxes in full, you may request to make monthly installment payments. If we approve your request, we agree to let you pay the tax you owe in monthly installments instead of immediately paying the amount in full. Once we accept your online installment agreement application, you should receive a written notice within 30 days. You can only make one request per year.