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IRS provides options for taxpayers who pay late

Categories Tax Tips (Fed)

You have several options when it comes to paying overdue taxes. If you need more time, you may qualify for a short-term extension of time to pay or a monthly installment payment agreement. If those options will not work, you may want to consider an Offer in Compromise. Under the IRS OIC program, you may be able to settle your tax debt for less than the full amount owed. The following options are available to help you pay your tax debt:

1. Fresh Start.  If you’re struggling to pay your taxes, the IRS Fresh Start initiative may help you. Fresh Start makes it easier for individual and small business taxpayers to pay back taxes and avoid tax liens. Get more details on Fresh Start on IRS.gov.      Fresh Start

2. Electronic Payments. The IRS offers various electronic payment options, such as using a credit or debit card to pay your taxes. These options are convenient, safe and secure. For more information about electronic payments, go to the Electronic Payment Options Home Page on IRS.gov.

Electronic Payment Options Home Page

 

3. More time to pay.  You may qualify for a short-term agreement to pay your taxes. This may apply if you can fully pay your taxes in 120 days or less. You can request it through the Online Payment Agreement application at IRS.gov. You may also call the IRS at the number listed on the last notice you received. There is generally no set-up fee for a short-term agreement.  

 Online Payment Agreement

 

4. Installment Agreement.  If you can’t pay what you owe in full and can’t get a loan, you may want to apply for a monthly payment plan, what we call an Installment Agreement. If you owe $50,000 or less, you can apply using the IRS Online Payment Agreement application. It’s quick and easy.  

Online Payment Agreement

5. Offer in Compromise. Use the OIC Pre-Qualifier tool to see if you may be eligible for an Offer in Compromise agreement before you apply. The tool will also direct you to other options if an OIC is not right for you.  

 

For more information about payment options or on the IRS Fresh Start program, visit IRS.gov. Also, see Publications 594, The IRS Collection Process, and 966, Electronic Choices to Pay All Your Federal Taxes, for more information. Get publications and forms at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

 

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