Paying a civil penalty in installments
Federal and state agencies generally collect a civil penalty in one payment, but most will accept an installment agreement when a payer shows the lump sum is not feasible. There is no single national installment statute covering every agency, so the terms come from the statute the penalty was assessed under and from the agency's own collection policy. This tool builds the payment schedule once you know the number of installments you are asking for.
How the schedule is built. The balance is divided evenly into principal payments, with any rounding difference carried into the final installment so the payments total the balance exactly. Due dates are advanced by your chosen interval with end-of-month clamping, so a plan starting on 31 January produces a 28 or 29 February second payment rather than spilling into March. If you enter a monthly rate, it is applied to the declining unpaid balance as a straight-line estimate.
Legal basis for the best-known program. The Internal Revenue Service accepts installment agreements under 26 U.S.C. §6159, with long-term plans commonly structured to pay the balance inside 72 months and always within the collection period. Interest keeps running under 26 U.S.C. §6621, and the failure-to-pay addition at 26 U.S.C. §6651(a)(2) is reduced while an installment agreement is in effect. Rates change quarterly, so the rate field is editable. Current as of September 2026.
This tool produces a payment simulation and does not guarantee that an agency will approve a plan or that the estimated charges match an official statement. Approval, plan length, setup fees, collateral and the effect of default are decided by the collecting agency. This calculator is for reference only and is not legal or tax advice. Consult a licensed attorney or CPA about your specific situation.
Frequently Asked Questions
It depends on the statute and the agency. The IRS commonly structures long-term plans within 72 months, but other agencies set their own limits, so confirm before relying on a schedule.
Rounding from dividing the balance is carried into the final installment so the scheduled payments add up to exactly the amount owed.