An Installment Agreement is a written agreement between a delinquent taxpayer and the IRS which requires the taxpayer to make periodic (typically monthly) payments to the IRS. The IRS will not enforce (levy) against a taxpayer for tax liabilities that are covered by an installment agreement that is in good standing. Some taxpayers verbally agree to make monthly payments to an IRS collection employee. If the agreement is not in writing, the taxpayer may be at risk of enforcement. State taxing authorities follow similar procedures.
For more information, refer to our article on Installment Agreements.