IRS: Tax Payment Options
If you're not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There's also a penalty for failure to file a tax return, so you should file timely even if you can't pay your balance in full. It's always in your best interest to pay in full as soon as you can to minimize the additional charges.
Paying electronically is a convenient way to pay your federal taxes online, by phone for EFTPS (the Electronic Federal Tax Payment System) or card payments, or from a mobile device. Electronic payment options are available on the IRS payments page and the IRS2Go app. When paying electronically, you can schedule your payment in advance and receive instant confirmation after you submit your payment. The IRS uses the latest encryption technology, making electronic payments safe and secure — it's quick, easy, and much faster than mailing in a check or money order.
IRS Direct Pay is a secure service you can use to pay your taxes for the Form 1040 series, estimated taxes, or other associated forms directly from your checking or savings account at no cost to you. Complete the five easy steps and you'll receive instant confirmation after you submit your payment. With Direct Pay, you can use the "Look Up a Payment" feature to view your payment details and status, and you can modify or cancel your payment up to two business days before your scheduled payment date.
You can access your federal tax account information through a secure login at Your Online Account. You can view the amount you owe along with details of your balance, view your payment history, access Get Transcript to download or print your tax records, and view key information from your current year tax return as originally filed. You can also pay using your bank account, a debit card, credit card, or digital wallet, or apply for an online payment agreement if you need more time to pay.
If you decide to pay by mail, enclose a check or money order with a copy of your tax return or notice. Make it payable to the United States Treasury and provide your name, address, daytime phone number, taxpayer identification number, tax year, and form or notice number (for example, 2022 Form 1040) on the front of your payment.
If you can't pay in full, you should pay as much as possible to reduce the accrual of interest on your account. You should also consider financing the full payment of your tax liability through loans, such as a home equity loan from a financial institution or a credit card. The interest rate and any applicable fees charged by a bank or credit card company may be lower than the combination of interest and penalties set by the Internal Revenue Code.
Short-Term Payment Plans (up to 180 days)
If you can't pay in full immediately, you may qualify for additional time — up to 180 days — to pay in full. There's no fee for this; however, interest and any applicable penalties continue to accrue until your liability is paid in full. Individuals may be able to set up a short-term payment plan using the Online Payment Agreement (OPA) application or by calling 800-829-1040.
Payment Plans (Installment Agreements)
If you're not able to pay your balance in full immediately or within 180 days, you may qualify for a monthly payment plan (including an installment agreement). To request a payment plan, use the OPA application, complete Form 9465 (Installment Agreement Request) and mail it in, or call the appropriate number. A payment plan allows you to make a series of monthly payments over time. The IRS offers various options for making monthly payments:
- Direct debit from your bank account
- Payroll deduction from your employer
- Payment by EFTPS
- Payment by credit card or debit card via phone or internet
- Payment via check or money order
- Payment with cash at a retail partner
The IRS charges a user fee when you enter into a payment plan; however, if you are a low-income taxpayer, this user fee is reduced and possibly waived or reimbursed when certain conditions apply. Installment agreements by direct debit and payroll deduction enable you to make timely payments automatically and reduce the possibility of default.
For a direct debit installment agreement, you must provide your checking account number, your bank routing number, and written authorization to initiate the automated withdrawal of the payment. Direct debit installment agreements have a lower user fee compared to other installment agreements, and the fee may be waived or reimbursed for low-income taxpayers. For a payroll deduction installment agreement, submit Form 2159 (Payroll Deduction Agreement); your employer must complete it, as it's an agreement between you, your employer, and the IRS.
Types of Payment Plans (Installment Agreements)
Generally, the following installment agreements allow for streamlined processing by not requiring the completion of a collection information statement or a determination to file a Notice of Federal Tax Lien. Remember, before your payment plan request can be considered, you must be current on all filing and payment requirements.
Generally, you're eligible for a streamlined installment agreement if your assessed tax liability is $25,000 or less, or $25,000 to $50,000 (for an individual or out-of-business sole proprietorship) and you agree to pay by direct debit or payroll deduction. Your proposed payment must full-pay the assessed liability within 72 months or by the Collection Statute Expiration Date (CSED), whichever is less.
You're eligible for an in-business trust fund express installment agreement if your assessed tax liability is $25,000 or less and your proposed payment will full-pay the liability within 24 months or by the CSED date, whichever is earlier. You must pay by direct debit if the liability is between $10,000 and $25,000.
You're eligible for a guaranteed installment agreement if the tax you owe isn't more than $10,000 and, during the past 5 years, you (and your spouse if filing jointly) have timely filed all income tax returns and paid any tax due and haven't entered into an installment agreement; you agree to pay the full amount within 3 years and comply with the tax laws; and you're financially unable to pay in full when due.
An installment agreement that will not full-pay the entire balance before the CSED is called a Partial Payment Installment Agreement (PPIA). A PPIA requires a financial statement and supporting information, and a Notice of Federal Tax Lien determination. If approved, a PPIA is subject to future reviews to determine if your financial situation has changed.
Offer in Compromise
An Offer in Compromise (OIC) is an agreement between you and the IRS that resolves your tax liability by payment of an agreed-upon reduced amount. Before the IRS will consider an OIC, you must have filed all tax returns, received a bill for at least one tax debt included on the offer, made all required estimated tax payments for the current year, and (if you're a business owner with employees) made all required federal tax deposits for the current quarter and the two preceding quarters. If you are in an open bankruptcy proceeding, you aren't eligible to enter into an OIC. To confirm eligibility, use the Offer in Compromise Pre-Qualifier tool.
Temporarily Delay Collection
If you can't pay any of the amount due because payment would prevent you from meeting your basic living expenses, you can request that the IRS delay collection until you're able to pay. If the IRS determines you can't pay because of financial hardship, it may temporarily delay collection by reporting your account as currently not collectible until your financial condition improves. Being currently not collectible does not mean the debt goes away — penalties and interest continue to accrue, and the IRS may still file a Notice of Federal Tax Lien.
Levy Prohibited and the IRS's Time to Collect Is Suspended
With certain exceptions, the IRS is generally prohibited from levying, and the IRS's time to collect is suspended or prolonged, while an installment agreement or OIC is pending, for 30 days after a rejection, and during the period a timely appeal is being considered.
Responding to Your IRS Notice
It's important to respond to an IRS notice. If you don't pay your tax liability in full or make an alternative payment arrangement, the IRS has the right to take collection action. If you're not able to make any payment at this time, please have your financial information available (pay stubs, lease or rental agreements, mortgage statements, car lease/loan, utilities) and call 800-829-1040 (individuals) or 800-829-4933 (businesses) for assistance. You have rights and protections throughout the collection process — see the Taxpayer Bill of Rights and Publication 1, Your Rights as a Taxpayer.