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Ly payments. We base the amount and number of your installment payments on the amount you owe and your ability to pay that amount within the time we can legally collect payments from you. You should be aware, however, that an installment agreement is more costly than paying all the taxes you owe now. Like revolving credit arrangements, we charge interest on the unpaid portion of the debt. Penalties also continue to accumulate on installment agreements. Another cost associated with an installment.

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