By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.
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.
If you can't pay the full amount due, pay as much as you can and visit IRS.gov/payments to consider our online payment options.
A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame. If you qualify for a short-term payment plan you will not be liable for a user fee. Not paying your taxes when they are due may cause the filing of a Notice of Federal Tax Lien and/or an IRS levy action. See Publication 594, The IRS Collection Process PDF .
When you request a payment plan (installment agreement), 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 (IA) is pending. An IA request is often pending until it can be reviewed, and an IA is established, or the request is withdrawn or rejected. If the requested IA is rejected, the running of the collection period is suspended for 30 days. Similarly, if you default on your IA payments and the IRS proposes to terminate the IA, the running of the collection period is suspended for 30 days. Last, if you exercise your right to appeal either an IA rejection or termination, the running of collection period is suspended by the time the appeal is pending to the date the appealed decision becomes final. Refer to Statutes of Limitations for Assessing, Collecting and Refunding Tax and Tax Topic No. 202 – Tax Payment Options.
If the IRS approves your payment plan (installment agreement), one of the following setup fees will be charged to cover the cost of providing the payment plan (installment agreement). For individuals who establish a payment plan (installment agreement) online, balances over $25,000 must be paid by Direct Debit. See Long-term payment plan below for other payment options. For businesses who establish a payment plan (installment agreement) online, balances over $10,000 must be paid by Direct Debit.
Apply online through the Online Payment Agreement tool or apply by phone or by mail by submitting Form 9465, Installment Agreement Request.