Installment Agreement - Individuals
We will always ask you to immediately pay your tax liability (including interest and penalties) in full. We encourage you to borrow from private sources to immediately pay your liability in full. If you are financially unable to pay the balance in full, you may be eligible to make payments in installments over time. We recommend you make the largest monthly payment possible because your tax liability will continue to accrue interest and applicable penalties until paid in full.
You may be eligible for an installment agreement if the following conditions apply:
- The tax liability you owe does not exceed $25,000.
- The installment period for payment does not exceed 60 months.
- You have filed all required valid personal income tax returns.
- You are not in an existing installment agreement.
- You do not currently have an Order to Withhold, Continuous Order to Withhold, or Earnings Withholding Order for Taxes against you.
Taxpayer Installment Agreement Conditions
You agree to:
- Make timely monthly payments until your tax liability is paid in full.
- Maintain adequate funds in your bank account.
- File all required valid personal income tax returns timely.
- Pay all future income tax balances timely.
- Pay a $34 installment agreement fee. We will add the fee to your balance due. (The fee amount is subject to change without further notice.)
- If the tax liability you owe exceeds $10,000, or the installment agreement period for payment exceeds 36 months, or both, then you must certify that you have a financial hardship. (In cases of financial hardship, installment agreements are subject to periodic review.)
- Confirm that the withholding rates for Forms DE 4 and W-4 on file with your employer are correct. If the withholding rates are incorrect, make changes to the forms accordingly.
- Make any required estimated payments if you receive income from sources other than wages.
We approve or reject your request based on your ability to pay and your compliance history. We may file a lien and/or request a financial statement as a condition for approval. If you misrepresent or fail to prove your financial condition, we may reject your installment agreement request.
How to request an installment agreement
- Payments must be made by electronic funds withdrawal. Have your bank account number and routing number on hand.
- Make monthly payments of $25 or more, based on your ability to pay. Have the amount you owe on hand so you can figure your payment amount and number of payments.
- You cannot have a current wage garnishment.
- You cannot have an existing installment agreement.
- You can apply online only once in a 12-month period.
- Only newly assessed liabilities may qualify for an online installment agreement.
By phone – Apply by phone using our Interactive Voice Response (IVR) system at 800.689.4776 during normal business hours, evenings, and weekends.
After you apply - Check the status of your request
- If you applied online - You must have your SSN and the Confirmation number located on the Confirmation page of your agreement.
- If you applied by phone using the Interactive Voice Response (IVR) – You can check the status of your IVR request by calling 800.689.4776. You must have your SSN and the confirmation number you received at the end of your IVR installment agreement request call.
- If you applied by mail or phone - You should receive written notification from us within 30 days. If you do not hear from us after 30 days, call us at 800.689.4776, Monday through Friday,
8 a.m. to 5 p.m., except state holidays. While you are waiting for approval, make the monthly payment you proposed. See payment
options for paying by credit card or Web Pay. To pay by check, mail your check to:
Franchise Tax Board
PO Box 942867
Sacramento, CA 94267-0011
- If we reject your Installment Agreement request, you may request, in writing, an independent administrative review. You must send your written request within 30 days of the date of the rejection of your installment agreement request, otherwise collection actions may resume.
Mail your written request and any supporting documents to:
EXECUTIVE AND ADVOCATE SERVICES, MS A381
PO BOX 157
RANCHO CORDOVA, CA 95741-0157
Other actions we may take
Filing a lien - We may file a state tax lien to protect the state’s interest until your balance is paid in full (Government Code Section 7170-7173). This can affect your credit report.
Future state and federal tax refunds - We will keep any state tax refund you are due and apply it towards your balance. This action does not replace your monthly payment. We may also submit your account to the Federal Treasury Offset Program. In that case the federal tax refund you would have received is used to pay all or a portion of a state income tax debt you owe. If the full amount owed is not collected in one year, we may offset future federal tax refunds to satisfy your tax debt.
Modifying a current installment agreement
To modify your payment amount on a current installment agreement, call us at the contact number in the next section.
Contact information and resources
- Phone: 800.689.4776, Monday through Friday, 8 a.m. to 5 p.m., except state holidays.
- Fax: 916.845.0993
Franchise Tax Board
PO Box 2952
Sacramento, CA 95812-2952
- Adjust Wage Withholding - Forms DE 4 and W-4
- Nonprofit organizations, such as Consumer Credit Counseling Service, offer free or low-cost financial counseling for all kinds of debt problems.