Taxpayers that owe taxes and cannot pay their balance in full can enter into a collection alternative known as an Installment Agreement (IA). Another term for it is a payment plan. Collection alternative means that the tax authority involved will not take enforcement action. Enforcement can be carried out through bank levies, wage garnishments, tax liens on property and asset seizures.
Installment Agreements may be subject to the filing of a tax lien. There are different types of IA's so it is important to carefully consider how a tax lien will affect you if you own a business or property. This is one of the most common solutions to tax problems when unpaid taxes are involved.