Can’t Pay Your Taxes?

Taxpayers who are unable to pay their tax bill in full still have several options to resolve their balance with the IRS. Acting early and communicating with the IRS can help reduce penalties, interest, and long-term financial stress.

File Your Taxes With a Partial Payment

Even if full payment is not possible, filing your tax return on time and submitting a partial payment can significantly reduce penalties and interest. Filing on time also helps avoid additional failure-to-file penalties.

Apply for an Installment Plan

The IRS offers installment plans that allow taxpayers to pay their tax balance over time. Short-term plans apply to balances of $100,000 or less and can be paid within 180 days. Long-term installment plans are available for smaller balances and can extend up to 72 months, depending on eligibility and payment history.

Under the Lump-Sum or Periodic Payment Plan

Taxpayers approved for an installment plan may choose either a lump-sum payment option or periodic monthly payments. Interest and penalties continue to accrue during the payment period, but payments reduce the overall balance owed.

Delay the Collection

In cases of financial hardship, the IRS may temporarily delay collection efforts by placing the account in “currently not collectible” status. While collection pauses, interest continues to accrue, and the IRS may periodically review the taxpayer’s financial situation.

Get Help From a Tax Pro

Taxpayers facing significant tax debt or complex financial circumstances may benefit from professional assistance. A tax professional can help evaluate options, negotiate with the IRS, and ensure the most appropriate resolution strategy is used.