---
kind: "section"
citation: "26 U.S.C. § 6159"
title: "26"
title_heading: "Internal Revenue Code"
number: "6159"
heading: "Agreements for payment of tax liability in installments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6159"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 62 — Time and Place for Paying Tax"
  - "Subchapter A — Place and Due Date for Payment of Tax"
---

# §6159. Agreements for payment of tax liability in installments

- (a) **Authorization of agreements—** The [Secretary](/usc/26/7701.md?p=a-11-B) is authorized to enter into written agreements with any [taxpayer](/usc/26/7701.md?p=a-14) under which such [taxpayer](/usc/26/7701.md?p=a-14) is allowed to make payment on any tax in installment payments if the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) under [subsection (a)](#a) shall remain in effect for the term of the agreement.
  - (2) **Inadequate information or jeopardy—** The [Secretary](/usc/26/7701.md?p=a-11-B) may terminate any agreement entered into by the [Secretary](/usc/26/7701.md?p=a-11-B) under [subsection (a)](#a) if—
    - (A) information which the [taxpayer](/usc/26/7701.md?p=a-14) provided to the [Secretary](/usc/26/7701.md?p=a-11-B) prior to the date such agreement was entered into was inaccurate or incomplete, or
    - (B) the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) makes a determination that the financial condition of a [taxpayer](/usc/26/7701.md?p=a-14) with whom the [Secretary](/usc/26/7701.md?p=a-11-B) has entered into an agreement under [subsection (a)](#a) has significantly changed, the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) may alter, modify, or terminate an agreement entered into by the [Secretary](/usc/26/7701.md?p=a-11-B) under [subsection (a)](#a) in the case of the failure of the [taxpayer](/usc/26/7701.md?p=a-14)—
    - (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](/usc/26/7701.md?p=a-11-B).
  - (5) **Notice requirements—** The [Secretary](/usc/26/7701.md?p=a-11-B) may not take any action under paragraph [(2)](#b-2), [(3)](#b-3), or [(4)](#b-4) unless—
    - (A) a notice of such action is provided to the [taxpayer](/usc/26/7701.md?p=a-14) not later than the day 30 days before the date of such action, and
    - (B) such notice [includes](/usc/26/7701.md?p=c) an explanation why the [Secretary](/usc/26/7701.md?p=a-11-B) intends to take such action.

    The preceding sentence shall not apply in any case in which the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-14) (and, if such liability relates to a [joint return](/usc/26/7701.md?p=a-38), the [taxpayer](/usc/26/7701.md?p=a-14)’s spouse) has not, during any of the preceding 5 [taxable years](/usc/26/7701.md?p=a-23)—
    - (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](/usc/26/7701.md?p=a-11-B) determines that the [taxpayer](/usc/26/7701.md?p=a-14) is financially unable to pay such liability in full when due (and the [taxpayer](/usc/26/7701.md?p=a-14) submits such information as the [Secretary](/usc/26/7701.md?p=a-11-B) may require to make such determination);
  - (4) the agreement requires full payment of such liability within 3 years; and
  - (5) the [taxpayer](/usc/26/7701.md?p=a-14) 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](/usc/26/7701.md?p=a-11-B) under [subsection (a)](#a) for partial collection of a tax liability, the [Secretary](/usc/26/7701.md?p=a-11-B) shall review the agreement at least once every 2 years.
- (e) **Administrative review—** The [Secretary](/usc/26/7701.md?p=a-11-B) shall establish procedures for an independent administrative review of terminations of installment agreements under this section for [taxpayers](/usc/26/7701.md?p=a-14) 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](/usc/26/7701.md?p=a-14) 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](/usc/26/7701.md?p=a-11-B))—
    - (A) if the [taxpayer](/usc/26/7701.md?p=a-14) 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](/usc/26/7701.md?p=a-14) is unable to make payments under the installment agreement by electronic payment through a debit instrument, the [Secretary](/usc/26/7701.md?p=a-11-B) shall, upon completion of the installment agreement, pay the [taxpayer](/usc/26/7701.md?p=a-14) an amount equal to any such fees imposed.
- (g) **Cross reference—** For rights to administrative review and appeal, see [section 7122(e)](/usc/26/7122.md?p=e).

## 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.)

## Notes

### 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.”