If your intention was to avoid Interest and Penalties, it's too late. They've already begun. You will be charged interest and late payment penalties until the taxes you owe are paid in full, the failure to pay rate is decreased from .5% to .25% per month while your installment agreement is in effect, but interest continues.
The amount you put down as the "down payment" reduces the total tax owed. You will then offer a payment plan that can span up to six years.
Please note that if you are delinquent in your taxes in any of those six years the Offer can be terminated, and full restoration can come into play.
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