# 26 U.S.C. § 6159: Agreements for payment of tax liability in installments

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s6159>. Cite pinpoints as 26 U.S.C. § 6159(a)(1).

## § 6159(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.

## § 6159(b) Extent to which agreements remain in effect

**§ 6159(b)(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.

**§ 6159(b)(2) Inadequate information or jeopardy.** The Secretary may terminate any agreement entered into by the Secretary under subsection (a) if—

**§ 6159(b)(2)(A)** information which the taxpayer provided to the Secretary prior to the date such agreement was entered into was inaccurate or incomplete, or

**§ 6159(b)(2)(B)** the Secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy.

**§ 6159(b)(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.

**§ 6159(b)(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—

**§ 6159(b)(4)(A)** to pay any installment at the time such installment payment is due under such agreement,

**§ 6159(b)(4)(B)** to pay any other tax liability at the time such liability is due, or

**§ 6159(b)(4)(C)** to provide a financial condition update as requested by the Secretary.

**§ 6159(b)(5) Notice requirements.** The Secretary may not take any action under paragraph (2), (3), or (4) unless—

**§ 6159(b)(5)(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

**§ 6159(b)(5)(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.

## § 6159(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—

**§ 6159(c)(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;

**§ 6159(c)(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—

**§ 6159(c)(2)(A)** failed to file any return of tax imposed by subtitle A;

**§ 6159(c)(2)(B)** failed to pay any tax required to be shown on any such return; or

**§ 6159(c)(2)(C)** entered into an installment agreement under this section for payment of any tax imposed by subtitle A,

**§ 6159(c)(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);

**§ 6159(c)(4)** the agreement requires full payment of such liability within 3 years; and

**§ 6159(c)(5)** the taxpayer agrees to comply with the provisions of this title for the period such agreement is in effect.

## § 6159(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.

## § 6159(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.

## § 6159(f) Installment agreement fees

**§ 6159(f)(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.

**§ 6159(f)(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)—

**§ 6159(f)(2)(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

**§ 6159(f)(2)(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.

## § 6159(g) Cross reference

For rights to administrative review and appeal, see section 7122(e).

## Regulations

- [Treas. Reg. § 301.6159-0](/26/reg/301.6159-0.md): Table of contents. (interprets § 6159)
- [Treas. Reg. § 301.6159-1](/26/reg/301.6159-1.md): Agreements for payment of tax liabilities in installments. (interprets § 6159)

## Final rules

- [74 FR 61525](https://www.federalregister.gov/documents/2009/11/25/E9-28330/agreements-for-payment-of-tax-liabilities-in-installments) (2009): Agreements for Payment of Tax Liabilities in Installments

## Leading cases

- [Thompson v. Commissioner, 140 T.C. 173 (2013)](https://www.courtlistener.com/opinion/4562275/thompson-v-commissioner/)
- [Dudley's Commercial & Industrial Coating, Inc. v. United States Internal Revenue Service, 292 F. Supp. 2d 976 (M.D. Tenn. 2003)](https://www.courtlistener.com/opinion/2331549/dudleys-commercial-industrial-coating-inc-v-united-states-internal/)
- [Karakaedos v. Commissioner, T.C. Memo. 2012-53](https://www.courtlistener.com/opinion/4561754/karakaedos-v-commr/)

## Connections

Cites: § 7122 Compromises

Cited by: § 6103 Confidentiality and disclosure of returns and return information; § 6323 Validity and priority against certain persons; § 6330 Notice and opportunity for hearing before levy; § 6331 Levy and distraint; § 6343 Authority to release levy and return property; § 6601 Interest on underpayment, nonpayment, or extensions of time for payment, of tax; § 6651 Failure to file tax return or to pay tax; § 6702 Frivolous tax submissions; § 7122 Compromises; § 7345 Revocation or denial of passport in case of certain tax delinquencies

## Amendments

- 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3735
- 1996-07-30: [Pub. L. 104-168](/26/act/104-168.md), 110 Stat. 1456
- 1998-07-22: [Pub. L. 105-206](/26/act/105-206.md), 112 Stat. 766
- 1998-10-21: [Pub. L. 105-277](/26/act/105-277.md), 112 Stat. 2681
- 2004-10-22: [Pub. L. 108-357](/26/act/108-357.md), 118 Stat. 1600
- 2006-05-17: [Pub. L. 109-222](/26/act/109-222.md), 120 Stat. 363
- 2018-02-09: [Pub. L. 115-123](/26/act/115-123.md), 132 Stat. 157