Tax Debt Resolution – Guaranteed Installment Agreement

Last updated on September 4, 2023

When resolving a tax debt, you should choose the most appropriate payment plan. An appropriate payment plan is one that you can qualify for, provides you the most advantages, and allows you a comfortable resolution. If you have the ability to pay your entire tax debt amount, but not at once, then you may request to pay in monthly installments by qualifying for an Installment Agreement.

If you owe $10,000 or less in tax debt, then you can opt for a Guaranteed Installment Agreement. You are eligible for a Guaranteed Installment Agreement if:

• You have filed all of your income tax returns during the past five years
• You have not entered into an Installment Agreement for the payment of taxes due
• You agree to pay the full tax debt amount within 3 years
• You agree to comply with all the rules of the agreement

Even if you have the financial capability to pay your tax debt in full, the IRS cannot necessarily force you to pay the full amount in one lump sum. You can apply for an Installment Agreement and pay your tax debt in fixed monthly installments over a period of time.

Taxpayers who owe more than $10,000 in tax debt may qualify for other types of Installment Agreements which fit their needs.