Which of the following describes the benefit of an Installment Agreement with the IRS?

An Installment Agreement with the IRS allows taxpayers to make payments toward their tax liabilities over time, rather than needing to pay the full amount at once. This can be particularly beneficial for individuals or businesses facing financial hardships who may not be able to settle their total tax bill immediately. The agreement breaks down the total owed into manageable monthly payments, making it easier for taxpayers to meet their obligations without facing severe financial strain.

While other choices may sound appealing, they do not accurately represent the nature of an Installment Agreement. For instance, it does not provide permanent tax relief, as taxpayers will still need to pay what they owe, albeit in installments. There is also no reduction in the total tax liability through this agreement; it simply allows for the existing liability to be paid over an extended period. Finally, an Installment Agreement does not automatically entitle a taxpayer to refunds; instead, it strictly addresses the payment of taxes owed.