You can choose to enter into a credit agreement or use a debt voucher. For more information, see Credit agreements and promissy notes. The IRS offers several types of payment plans. Some plans offer penalties and limited interest if you pay your taxes in a short period of time. Others allow you to spread your payments over a longer period of time, but add interest, fees, and penalties. Which instalment payment contract suits you best depends: you can make all the changes you want by first logging into the online payment tool. On the first page, you can review your current plan type, payment date, and amount. Then, submit your changes. If you accept that you owe money to an individual or a company, but currently you do not have the financial means to immediately pay the outstanding debts, you can offer to pay in instalments. This shows good intention and willingness to repay a debt and can deter a creditor from taking further action. It can also help with your cash flow, especially if you are a business. If your new monthly payment amount does not meet the requirements, you will be prompted to review the payment amount.
If you are unable to pay the minimum amount required, you will receive a guide to complete and submit a Form 433-E Collection Information Statement PDF. After the signature of the creditor and the debtor, the contract becomes final. A letter accepting payment in instalments creates a formal legal agreement for debt repayment.