# § 6159. Agreements for payment of tax liability in installments
**(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—
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.
**(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.
**(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).
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**Source Credit**: (Added Pub. L. 100–647, title VI, § 6234(a), Nov. 10, 1988, 102 Stat. 3735; amended Pub. L. 104–168, title II, §§ 201(a), (b), 202(a), July 30, 1996, 110 Stat. 1456, 1457; Pub. L. 105–206, title III, §§ 3462(c)(2), 3467(a), July 22, 1998, 112 Stat. 766, 769; Pub. L. 105–277, div. J, title IV, § 4002(g), Oct. 21, 1998, 112 Stat. 2681–907; Pub. L. 108–357, title VIII, § 843(a), (b), Oct. 22, 2004, 118 Stat. 1600; Pub. L. 109–222, title V, § 509(c), May 17, 2006, 120 Stat. 363; Pub. L. 115–123, div. D, title II, § 41105(a), Feb. 9, 2018, 132 Stat. 157.)
## 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 , which was approved .
### Amendments
2018—Subsecs. (f), (g). added subsec. (f) and redesignated former subsec. (f) as (g).
2006—Subsec. (f). substituted “section 7122(e)” for “section 7122(d)”.
2004—Subsec. (a). , substituted “make payment on” for “satisfy liability for payment of” and inserted “full or partial” after “facilitate”.
Subsec. (c). , inserted “full” before “payment” in introductory provisions.
Subsecs. (d) to (f). , added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively.
1998—Subsec. (c). , added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). redesignated subsec. (d), relating to cross reference, as (e).
, redesignated former subsec. (c), relating to administrative review, as (d).
, added subsec. (d), relating to cross reference.
Subsec. (e). redesignated subsec. (d), relating to cross reference, as (e).
1996—Subsec. (b)(3). , amended par. (3) generally. Prior to amendment, par. (3) read as follows:
“(A) .—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) .—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). , added par. (5).
Subsec. (c). , added subsec. (c).
## Statutory Notes and Related Subsidiaries
### Effective Date of 2018 Amendment
> “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 [
>
> ].”
, , , provided that:
### Effective Date of 2006 Amendment
> “The amendments made by this section [amending this section and
>
> ] 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 [
>
> ].”
, , , provided that:
### Effective Date of 2004 Amendment
> “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 [
>
> ].”
, , , provided that:
### Effective Date of 1998 Amendments
Amendment by effective as if included in the provision of the Internal Revenue Service Restructuring and Reform Act of 1998, , to which such amendment relates, see , set out as a note under .
Amendment by applicable to proposed offers-in-compromise and installment agreements submitted after , see , set out as a note under .
> “The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [
>
> ].”
, , , provided that:
### Effective Date of 1996 Amendment
> “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 [
>
> ].”
, , , provided that:
> “The amendment made by subsection (a) [amending this section] shall take effect on
>
> .”
, , , provided that:
### Effective Date
> “The amendments made by this section [enacting this section and amending
>
> ] shall apply to agreements entered into after the date of the enactment of this Act [
>
> ].”
, , , provided that:
### Statements Regarding Installment Agreements
> “The Secretary of the Treasury or the Secretary’s delegate shall, beginning not later than
>
> , 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.”
, , , as amended by , , , 2763A–632, provided that: