What if You Can’t Pay Your Tax Bill?

If you owe the IRS but can’t pay the full amount by the deadline, don’t ignore it—there are options available to help you avoid harsher penalties or enforcement.

• Payment Plans

  There are two main types of payment arrangements:

  • Short-Term Plan (180 days or less)

    • Available if you owe less than $100,000 (including tax, penalties, and interest)

    • No setup fee

    • Penalties and interest continue to accrue until paid in full

  • Long-Term Plan (Monthly Installment Agreement)

    • Available if you owe $50,000 or less and have filed all required returns

    • $31 setup fee (if you apply online and use direct debit)

    • Penalties and interest continue to accrue until paid in full

  Apply online here: IRS Online Payment Agreement Application

• Offer in Compromise

This lets you settle your tax debt for less than the full amount owed if paying in full would cause financial hardship. It’s not right for everyone, but it may be worth exploring if you're truly unable to pay.

• A Few Quick Notes:

• You don’t have to wait until the deadline to set up a payment plan—earlier is better.

• An extension to file is not an extension to pay. Interest and penalties still apply after the original due date.