Title 26, Internal Revenue CodeRelease 119-110
§6159 Agreements for Payment of Tax Liability in Installments
Title 26 › Subtitle F — Procedure and Administration › CHAPTER 62 — TIME AND PLACE FOR PAYING TAX › Subchapter A — Place and Due Date for Payment of Tax › § 6159
Summary
The IRS can make written deals letting a taxpayer pay a tax bill in installments if that helps collect the tax. Those deals usually run as agreed. The IRS can change or end a deal if the taxpayer gave wrong or incomplete information, if collecting the tax looks at risk, if the taxpayer’s finances change a lot, if an installment or any other tax is not paid on time, or if the taxpayer won’t give requested financial facts. The IRS must give the taxpayer a written notice at least 30 days before changing or ending the deal and explain why, unless the IRS thinks collection is in jeopardy. If an individual owes $10,000 or less (not counting interest, penalties, or additions) the IRS must accept an installment plan when the person shows they cannot pay now, has not in the past 5 years failed to file or pay or used a prior installment plan, will pay in full within 3 years, and will follow tax rules while the plan lasts. If a plan only collects part of the debt, the IRS must review it at least every 2 years. The IRS must offer an independent administrative review if a taxpayer asks. Fees for plans cannot exceed the amount in effect when the fee rule was made. If a taxpayer’s adjusted gross income is at or below 250% of the poverty level, there is no fee when paying by electronic debit; if that person cannot pay electronically, the IRS must refund any fees when the plan ends.
Full Legal Text
Title 26, §6159
Internal Revenue Code, Source: USLM XML via OLRC
(a)Authorization of agreements
The Secretary is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to make payment on any tax in installment payments if the Secretary determines that such agreement will facilitate full or partial collection of such liability.
(b)Extent to which agreements remain in effect
(1)In general
Except as otherwise provided in this subsection, any agreement entered into by the Secretary under subsection (a) shall remain in effect for the term of the agreement.
(2)Inadequate information or jeopardy
The Secretary may terminate any agreement entered into by the Secretary under subsection (a) if—
(A)information which the taxpayer provided to the Secretary prior to the date such agreement was entered into was inaccurate or incomplete, or
(B)the Secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy.
(3)Subsequent change in financial conditions
If the Secretary makes a determination that the financial condition of a taxpayer with whom the Secretary has entered into an agreement under subsection (a) has significantly changed, the Secretary may alter, modify, or terminate such agreement.
(4)Failure to pay an installment or any other tax liability when due or to provide requested financial information
The Secretary may alter, modify, or terminate an agreement entered into by the Secretary under subsection (a) in the case of the failure of the taxpayer—
(A)to pay any installment at the time such installment payment is due under such agreement,
(B)to pay any other tax liability at the time such liability is due, or
(C)to provide a financial condition update as requested by the Secretary.
(5)Notice requirements
The Secretary may not take any action under paragraph (2), (3), or (4) unless—
(A)a notice of such action is provided to the taxpayer not later than the day 30 days before the date of such action, and
(B)such notice includes an explanation why the Secretary intends to take such action.
The preceding sentence shall not apply in any case in which the Secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy.
(c)Secretary required to enter into installment agreements in certain cases
In the case of a liability for tax of an individual under subtitle A, the Secretary shall enter into an agreement to accept the full payment of such tax in installments if, as of the date the individual offers to enter into the agreement—
(1)the aggregate amount of such liability (determined without regard to interest, penalties, additions to the tax, and additional amounts) does not exceed $10,000;
(2)the taxpayer (and, if such liability relates to a joint return, the taxpayer’s spouse) has not, during any of the preceding 5 taxable years—
(A)failed to file any return of tax imposed by subtitle A;
(B)failed to pay any tax required to be shown on any such return; or
(C)entered into an installment agreement under this section for payment of any tax imposed by subtitle A,
(3)the Secretary determines that the taxpayer is financially unable to pay such liability in full when due (and the taxpayer submits such information as the Secretary may require to make such determination);
(4)the agreement requires full payment of such liability within 3 years; and
(5)the taxpayer agrees to comply with the provisions of this title for the period such agreement is in effect.
(d)Secretary required to review installment agreements for partial collection every two years
In the case of an agreement entered into by the Secretary under subsection (a) for partial collection of a tax liability, the Secretary shall review the agreement at least once every 2 years.
(e)Administrative review
The Secretary shall establish procedures for an independent administrative review of terminations of installment agreements under this section for taxpayers who request such a review.
(f)Installment agreement fees
(1)Limitation on fee amount
The amount of any fee imposed on an installment agreement under this section may not exceed the amount of such fee as in effect on the date of the enactment of this subsection.
(2)Waiver or reimbursement
In the case of any taxpayer with an adjusted gross income, as determined for the most recent year for which such information is available, which does not exceed 250 percent of the applicable poverty level (as determined by the Secretary)—
(A)if the taxpayer has agreed to make payments under the installment agreement by electronic payment through a debit instrument, no fee shall be imposed on an installment agreement under this section, and
(B)if the taxpayer is unable to make payments under the installment agreement by electronic payment through a debit instrument, the Secretary shall, upon completion of the installment agreement, pay the taxpayer an amount equal to any such fees imposed.
(g)Cross reference
For rights to administrative review and appeal, see section 7122(e).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The date of the enactment of this subsection, referred to in subsec. (f)(1), is the date of enactment of Pub. L. 115–123, which was approved Feb. 9, 2018.
Amendments
2018—Subsecs. (f), (g). Pub. L. 115–123 added subsec. (f) and redesignated former subsec. (f) as (g). 2006—Subsec. (f). Pub. L. 109–222 substituted “section 7122(e)” for “section 7122(d)”. 2004—Subsec. (a). Pub. L. 108–357, § 843(a)(1), substituted “make payment on” for “satisfy liability for payment of” and inserted “full or partial” after “facilitate”. Subsec. (c). Pub. L. 108–357, § 843(a)(2), inserted “full” before “payment” in introductory provisions. Subsecs. (d) to (f). Pub. L. 108–357, § 843(b), added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively. 1998—Subsec. (c). Pub. L. 105–206, § 3467(a), added subsec. (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 105–277 redesignated subsec. (d), relating to cross reference, as (e). Pub. L. 105–206, § 3467(a), redesignated former subsec. (c), relating to administrative review, as (d). Pub. L. 105–206, § 3462(c)(2), added subsec. (d), relating to cross reference. Subsec. (e). Pub. L. 105–277 redesignated subsec. (d), relating to cross reference, as (e). 1996—Subsec. (b)(3). Pub. L. 104–168, § 201(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “(A) In general.—If the Secretary makes a determination that the financial condition of a taxpayer with whom the Secretary has entered into an agreement under subsection (a) has significantly changed, the Secretary may alter, modify, or terminate such agreement. “(B) Notice.—Action may be taken by the Secretary under subparagraph (A) only if— “(i) notice of such determination is provided to the taxpayer no later than 30 days prior to the date of such action, and “(ii) such notice includes the reasons why the Secretary believes a significant change in the financial condition of the taxpayer has occurred.” Subsec. (b)(5). Pub. L. 104–168, § 201(a), added par. (5). Subsec. (c). Pub. L. 104–168, § 202(a), added subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date
of 2018 Amendment Pub. L. 115–123, div. D, title II, § 41105(b), Feb. 9, 2018, 132 Stat. 157, provided that: “The
Amendments
made by this section [amending this section] shall apply to agreements entered into on or after the date which is 60 days after the date of the enactment of this Act [Feb. 9, 2018].”
Effective Date
of 2006 Amendment Pub. L. 109–222, title V, § 509(d), May 17, 2006, 120 Stat. 364, provided that: “The
Amendments
made by this section [amending this section and section 7122 of this title] shall apply to offers-in-compromise submitted on and after the date which is 60 days after the date of the enactment of this Act [May 17, 2006].”
Effective Date
of 2004 Amendment Pub. L. 108–357, title VIII, § 843(c), Oct. 22, 2004, 118 Stat. 1600, provided that: “The
Amendments
made by this section [amending this section] shall apply to agreements entered into on or after the date of the enactment of this Act [Oct. 22, 2004].”
Effective Date
of 1998
Amendments
Amendment by Pub. L. 105–277 effective as if included in the provision of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105–206, to which such amendment relates, see section 4002(k) of Pub. L. 105–277, set out as a note under section 1 of this title. Amendment by section 3462(c)(2) of Pub. L. 105–206 applicable to proposed offers-in-compromise and installment agreements submitted after
July 22, 1998, see section 3462(e)(1) of Pub. L. 105–206, set out as a note under section 6331 of this title. Pub. L. 105–206, title III, § 3467(b),
July 22, 1998, 112 Stat. 770, provided that: “The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [
July 22, 1998].”
Effective Date
of 1996 Amendment Pub. L. 104–168, title II, § 201(c), July 30, 1996, 110 Stat. 1457, provided that: “The
Amendments
made by this section [amending this section] shall take effect on the date 6 months after the date of the enactment of this Act [
July 30, 1996].” Pub. L. 104–168, title II, § 202(b),
July 30, 1996, 110 Stat. 1457, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on
January 1, 1997.”
Effective Date
Pub. L. 100–647, title VI, § 6234(c), Nov. 10, 1988, 102 Stat. 3736, provided that: “The
Amendments
made by this section [enacting this section and amending section 6601 of this title] shall apply to agreements entered into after the date of the enactment of this Act [Nov. 10, 1988].” Statements Regarding Installment Agreements Pub. L. 105–206, title III, § 3506,
July 22, 1998, 112 Stat. 771, as amended by Pub. L. 106–554, § 1(a)(7) [title III, § 302(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–632, provided that: “The Secretary of the Treasury or the Secretary’s delegate shall, beginning not later than
September 1, 2001, provide each taxpayer who has an installment agreement in effect under section 6159 of the Internal Revenue Code of 1986 an annual statement setting forth the initial balance at the beginning of the year, the payments made during the year, and the remaining balance as of the end of the year.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 6159
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110