Skip to content
LatchkeyDaily
Subscribe

Glossary

Installment agreement

Installment agreement: An installment agreement is an IRS payment plan that lets you pay a tax balance monthly, typically over up to 72 months for balances under $50,000.

Updated February 1, 2027

An example

Paying a $12,000 balance at $200 a month through the IRS Online Payment Agreement.

Why it matters to you

It is the most common resolution and usually takes fifteen minutes to set up online, once all returns are filed.

Where to go next

Plain English, every weekday

The brief defines every new term the first time it appears.

Free. Weekday mornings. Includes free access to In Case and Serum, the Latchkey tools. Unsubscribe in one click.

See also

  • Offer in Compromise

    An Offer in Compromise is an IRS program that lets a taxpayer settle a tax debt for less than the full amount when the IRS agrees it could not collect more.

  • Currently Not Collectible

    Currently Not Collectible (CNC) is an IRS status in which collection is paused because the IRS has agreed that paying would leave you unable to cover basic living expenses.