Installment Agreement

Generally, when you enter into an installment agreement, you agree to make a series of payments equal to the full amount of assessed tax, penalties, and interest over a set period of time.

We may revise or cancel approved agreements if we subsequently receive financial information that reflects a change in your ability to pay.

You may resolve outstanding liability for multiple return periods or years under a single installment agreement. You may also resolve outstanding liability for multiple businesses under the same ownership, i.e., same Employer Identification Number (EIN).

Interest and penalties will accrue until the liability is fully satisfied. You can reduce the amount of interest due at the end of the time specified in the agreement by making additional payments during the repayment period or by paying off your debt early.

Generally, we notify taxpayers whether we are approving or denying their request for an installment agreement within 60 days of receipt of all necessary information.

To learn more about agreements for payment of tax liability in installments, see 26 U.S.C. 6159 and 27 CFR 70.481.

You must be able to demonstrate you have the financial ability to pay off your tax debt as well as all future liabilities you incur during the agreement.

You must agree that for the term of the agreement, you will timely pay all federal taxes or other obligations due and timely file all federal tax returns.

Generally, you must send any outstanding tax returns and operational reports before we can approve an installment agreement.

To start the process, complete TTB F 5600.31, Application for Installment Agreement.

Depending on the length of the agreement you seek, TTB generally requests:

Short-term Installment Agreement (12 months or less)

• The three most recent months of statements for all company financial accounts, such as checking, savings, money market, brokerage, etc.
• The three most recent months of statements for all real estate holdings and business assets with an encumbrance, such as a mortgage, lien, or other claim against the property by someone other than the owner.
• Copies of your current debt/loan agreements.
• Your latest balance sheet.

Long-term Installment Agreement (more than 12 months, generally up to 36 months)

• Collection Information Statement (and any attachments required by that form)
  • Individual taxpayers use TTB F 5600.17
  • Businesses use TTB F 5600.18
• The three most recent months of statements for all company financial accounts, such as checking, savings, money market, brokerage, etc.
• The three most recent months of statements for all real estate holdings and business assets with an encumbrance, such as a mortgage, lien, or other claim against the property by someone other than the owner.
• Copies of your current debt/loan agreements.
• Your latest balance sheet.
• Your latest profit and loss or income statement.
• Your last two federal (business) income tax returns.

Mail the completed TTB F 5600.31, Application for Installment Agreement together with the applicable additional information, to:

Office of Permitting and Taxation
Alcohol and Tobacco Tax and Trade Bureau
550 Main St., Ste. 8002
Cincinnati, OH 45202-3222