Installment Agreement - Individuals
After you apply
An installment agreement (IA) allows you to make monthly payments when you are financially unable to pay your tax liability in full.
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 do so.
We encourage you to make the largest monthly payment possible. Your tax liability will continue to accrue interest and applicable penalties until paid in full.
Future state and federal tax refunds - We will keep any state tax refund you are due and apply it to 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 paid in one year, we may offset future federal tax refunds to satisfy your tax debt.
Record a notice of state tax lien - We may record a lien to protect the state’s interest until your balance is paid in full. This may affect your credit report.
Am I eligible?
You may be eligible for an IA if the following conditions apply:
- Your tax liability 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 IA.
If you are ineligible for an IA, or if you currently have an Order to Withhold, Continuous Order to Withhold, or Earnings Withholding Order for Taxes in effect, call us to discuss options to resolve your account.
IA terms and conditions
- Payment – Make timely monthly payments until your tax liability is paid in full.
- Funds – Maintain adequate funds in your bank account.
- Tax returns – File all required valid personal income tax returns timely.
- Future balances - Pay all future income tax balances timely.
- Fee –Pay a $34 IA fee, which will be added to your balance due.
- Withholding – Confirm that the wage withholding rates for Forms DE 4 and W-4 on file with your employer will withhold enough state income tax to pay your state income tax liability for subsequent years..
- Estimated tax payments – Make any required estimated tax payments.
- Certify financial hardship - If your tax liability exceeds $10,000 or the installment period for payment exceeds 36 months, then you must certify you have a financial hardship.
We approve or reject your IA request based on your ability to pay and your compliance history. We may request a financial statement as a condition for approval. If you misrepresent or fail to prove your financial condition, we may reject your request. IAs are subject to periodic review.
Request an IA
- Phone - Call 800.689.4776 to use the Interactive Voice Response (IVR) system 24 hours a day, 7 days a week.
- Mail - Complete and mail FTB 3567, Installment Agreement Request. Incomplete information will delay the processing of your request.
Check the status of your request
Have your social security number (SSN) and confirmation number available.
- If you applied online, log in to check your status.
- If you applied by phone or mail – Call us if you have not received written notification within 30 days.
If your request is accepted:
- We will send you a notice confirming:
- Your monthly payment amount.
- Your monthly payment due date including the first payment due date.
- If you do not comply with the terms and conditions, we will send you a notice of intent to terminate your IA. The notice will be sent thirty (30) days prior to termination and give the reason for such action.
If your request is rejected:
- We will send you a notice informing you of the rejection of your IA request.
- You may request, in writing, an independent administrative review of the rejection of your IA request. You must send your written request for a review within 30 days of the rejection of your IA request, otherwise collection actions may resume.
Modify a current IA
If your financial situation has changed and you need to modify your payment amount, call us.
Phone: 800.689.4776, weekdays, 8 a.m. to 5 p.m., except state holidays.
Mail correspondence to:
Franchise Tax Board
PO Box 2952
Sacramento, CA 95812-2952
Mail payment to:
Franchise Tax Board
PO Box 942867
Sacramento, CA 94267-0011