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 and pay as much as you are able, 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 interest and penalties and paying what you can when you file will also minimize those charges.
Paying electronically is a convenient way to pay your federal taxes. Electronic payment options are available on our payments page and the IRS2Go app. You can pay your federal taxes electronically online or by phone. When paying electronically, you can schedule your payment in advance. You'll receive instant confirmation after you submit your payment. You can opt in to receive email notifications about your payments. 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.
Electronic payment methods
Direct Pay
IRS Direct Pay is a secure service you can use to pay both individual and business taxes 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 also:
- look up your payment details and status
- opt in to receive email notifications about your payment
- modify or cancel your payment up to two business days before your scheduled payment date
IRS Online Account
An IRS Online Account provides access to your federal tax account information through a secure login. You can:
- view the amount you owe
- view details of your balance
- view your payment history
- view, print or download your transcripts
- view key information from your current year tax return as originally filed
In addition, you can pay using your bank account or a debit card, credit card or digital wallet or apply for an Online Payment Agreement if you need more time to pay.
Mailing a payment
If you decide to pay by mail, enclose a check or money order when you file your return, with a payment voucher, or copy of your balance due notice. Make the check or money order payable to the United States Treasury and provide the following information on the front of your payment:
- name
- address
- daytime phone number
- taxpayer identification number
- tax year, and
- form or notice number (for example, 2024 Form 1040)
If you can't pay in full, you should pay as much as possible to reduce the accrual of interest and penalties on your account. Please refer to Topic no. 158 for information needed to ensure proper credit of your payment. You should 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 short-term payment plan. 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 by using the Online Payment Agreement application or by calling us. Businesses must call for a short-term payment plan. Check the hours of availability.
Long-term 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 (installment agreement) that lets you make a series of monthly payments over time. Different types of long-term payment plans are available depending on your situation.
Requesting a long-term payment plan
To request a long-term payment plan, use the Online Payment Agreement application. Even if the IRS hasn’t yet issued you a bill, you may establish a pre-assessed agreement by entering the balance you’ll owe from your tax return. An online payment agreement is quick and has a lower user fee compared to other application methods.
Alternatively you can complete and mail paper Form 9465, Installment Agreement Request, file through tax filing software, or call us, preferably at the number on your bill if you received one.
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. See Additional information on payment plans for more details.
Qualifications for individual taxpayers
Before your payment plan request can be considered, you must be current on all filing and payment requirements. Taxpayers in an open bankruptcy proceeding aren't eligible, generally.
Most individual taxpayers qualify for a Simple Payment Plan. Generally, you’re eligible if your assessed total balance of tax, penalties and interest owed is $50,000 or less. Your proposed payment amount must pay the tax liability in full by the Collection Statute Expiration Date. Generally, this is 10 years from the date your tax was assessed.
You’re eligible for a Guaranteed Installment Agreement if you are an individual, the tax you owe is $10,000 or less, excluding interest and penalties, and:
- during the past 5 years, you (and your spouse if filing a joint return) have timely filed all income tax returns and paid any income tax due
- during the past 5 years, you (and your spouse if filing a joint return) haven’t entered into an installment agreement for the payment of income tax
- you agree to pay the full amount you owe within 3 years and to comply with the tax laws while the agreement is in effect
- you’re financially unable to pay the liability in full when due.
If you don’t qualify for the above payment plans/installment agreements, you may still be eligible. However, a Notice of Federal Tax Lien determination and a collection information statement (Form 433-F PDF, Form 433-A PDF or Form 433-B PDF) may be required.
Qualifications for businesses
Generally, if your business doesn’t owe trust fund taxes, you’re eligible for a Streamlined Installment Agreement if:
- your assessed tax liability is $25,000 or less (in-business with income tax only, or an out-of-business taxpayer), or
- your assessed tax liability is $25,001 to $50,000 (an out-of-business sole proprietorship) and you agree to pay by direct debit (automatic payments from your bank account) or payroll deduction (if you earn wages)
Also, your proposed payment amount must pay the assessed tax liability in full within 72 months or by the Collection Statute Expiration Date, whichever is earlier.
Generally, if your business owes trust fund taxes, you’re eligible for an In-business Trust Fund Express Installment Agreement if:
- your assessed tax liability is $25,000 or less (for an in-business taxpayer),
- your proposed payment amount will pay the tax liability in full within 24 months or by the Collection Statute Expiration Date, whichever is earlier, and
- you pay by direct debit if the assessed tax liability is between $10,000 and $25,000.
If you do not qualify for the above payment plans/installment agreements, you may still be eligible. However, a Notice of Federal Tax Lien determination and a collection information statement (Form 433-F PDF, Form 433-A PDF or Form 433-B PDF) may be required.
Partial payment plan (installment agreement)
If you cannot afford to full by the Collection Statute Expiration Date (usually 10 years for individuals), a Partial Payment Installment Agreement may be an option for you. If you propose a payment amount that will not pay your entire balance by the Collection Statute Expiration Date, you will be required to complete a Collection Information Statement (Form 433-F PDF, Form 433-A PDF or Form 433-B PDF) and provide supporting financial information. We will also need to determine whether to issue a public notice of federal tax lien. If a partial payment installment agreement is approved, your agreement is subject to reviews every two years to determine if your financial situation has changed. You may be required to provide a new collection information statement and supporting financial information during these reviews. The financial information you provide may result in a reduction, an increase, or no change to your monthly payment amount.
Effect of payment plan on IRS collection activities and collection statute
Refer to Time the IRS can collect details. With certain exceptions, the collection period is suspended or extended, and IRS is prohibited from levying (seizing your property) while you are either waiting for an installment agreement to be approved or appealing our decision to terminate one.
An installment agreement request is often pending until:
- the IRS reviews it and establishes an installment agreement, or
- the IRS or rejects the request for an installment agreement, or
- you withdraw your request for an installment agreement.
If the requested installment agreement is rejected, the running of the collection period is suspended for 30 days. Similarly, if you stop paying (default on your installment agreement payments) and the IRS proposes to terminate the installment agreement, the running of the collection period is also suspended for 30 days. Last, if you timely exercise your right to appeal either an installment agreement rejection or termination, the collection period is suspended while we consider your appeal, from the date you make your appeal until the date our decision on it becomes final.
The collection period is not suspended while your installment agreement is in effect.
Making installment payments
You must specify the amount you can pay and the day of the month (1st through 28th) that your payment will be made. Your payment must be received by the IRS on your selected due date. If you plan on mailing your payment, consider mailing time when you select a payment date. The Online Payment Agreement application will provide an immediate determination for your proposed payment plan. If you mail Form 9465, the IRS will respond to your request typically within 30 days, but it may take longer during filing season.
Installment agreements paid by direct debit or payroll deduction enable you to make timely payments automatically and reduce the possibility of default. These convenient payment methods also allow you to avoid the time and expense of mailing monthly payments or paying electronically each month.
For a Direct Debit Installment Agreement, you must provide your checking account number, 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 user fee may be waived or reimbursed for low-income taxpayers.
For a Payroll Deduction Installment Agreement, submit Form 2159, Payroll Deduction Agreement PDF. Your employer must complete Form 2159, as it's an agreement between you, your employer, and the IRS.
The IRS offers various options for making monthly payments. For all accepted payment methods, see Make a payment.
Alternatives and other tax debt help
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 offer in compromise, you must have:
- filed all tax returns
- received a bill for at least one tax debt included on the offer, and
- made all required estimated tax payments for the current year
If you're a business owner with employees, you must have:
- made all required federal tax deposits for the current quarter, and
- made all required federal tax deposits for the two preceding quarters
If you are in an open bankruptcy proceeding, you aren't eligible for an offer in compromise. To confirm eligibility and ensure use of the current application forms, use the Offer in Compromise Pre-Qualifier tool. Use of the tool does not guarantee offer acceptance.
With certain exceptions, the IRS is generally prohibited from levying and the IRS’s time to collect is suspended or prolonged while an OIC is pending, for 30 days immediately following rejection of an OIC for the taxpayer to appeal the rejection, and if an appeal is requested within the 30 days, during the period while the rejection is being considered in Appeals. For additional information on offers in compromise, refer to Topic no. 204.
Temporarily delay the collection process
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 that you can't pay any of your tax debt because of financial hardship, the IRS may temporarily delay collection by reporting your account as currently not collectible until your financial condition improves.
However, being currently not collectible does not mean the debt goes away. It means the IRS has determined you can't afford to pay the debt at this time. Prior to approving your request to delay collection, we may ask you to complete a Collection Information Statement (Form 433-F PDF, Form 433-A PDF or Form 433-B PDF) and provide proof of your financial status. This may include information about your assets and your monthly income and expenses.
You should know that if we do delay collecting from you, your debt continues to accrue interest and penalties up to the maximum allowed by law until the debt is paid in full. During a temporary delay in collection, we will periodically review your ability to pay.
The IRS may temporarily suspend certain collection actions, such as issuing a levy (refer to Topic no. 201), until your financial condition improves. However, we may still file a Notice of Federal Tax Lien (refer to Topic no. 201) while your account is reported as currently not collectible. Please call us at 800-829-1040 (individuals) or 800-829-4933 (businesses) to discuss this option.
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. Refer to Topic no. 201 for information about the collection process.
If you're not able to make any payment at this time, please have your financial information available (for example, pay stubs, lease or rental agreements, mortgage statements, car lease/loan, utilities, etc.) and call us at the number on your notice, or 800-829-1040 (individuals) or 800-829-4933 (businesses) for assistance.
You have rights and protections throughout the collection process; see Taxpayer Bill of Rights and Publication 1, Your Rights as a Taxpayer. If you would like information about payment arrangements, installment agreements, and what happens when you take no action to pay, refer to Publication 594, The IRS Collection Process PDF.
For more information about making payments, payment plans (including installment agreements), and offers in compromise, review our Payments page.