If You Owe the IRS, Here are Payment Options Available

You may have filed your federal income tax return on time last month, but did you pay what you owed in full?

The Internal Revenue Service said today that there are several easy options for paying what you owe.



Taxpayers will receive a letter or notice in the mail from the IRS, usually within a few weeks, if they owe taxes. These notices, including the CP14 and CP501, both of which notify taxpayers that they have a balance due, are frequently mailed in the months of June and July, the IRS said.

Taxpayers can pay taxes by electronic funds transfer, credit card, check, money order or cash:

If your are unable to pay your taxes, contact the IRS as soon as possible. Several payment options are available including:

Online Payment Agreement — Individuals who owe $50,000 or less in combined income tax, penalties and interest — and businesses that owe $25,000 or less in payroll tax and have filed all tax returns — may qualify for an Online Payment Agreement. Most taxpayers qualify for this option, and an agreement can usually be set up in a matter of minutes. Online applications to establish tax payment plans, like online payment agreements and installment agreements, are available Monday – Friday., 6 a.m. to 12:30 a.m.; Saturday., 6 a.m. to 10 p.m.; Sunday, 6 p.m. to midnight.

Installment Agreement — Installment agreements paid by direct deposit from a bank account or a payroll deduction will help taxpayers avoid default on their agreements. It also reduces the burden of mailing payments and saves postage costs. Taxpayers who don’t qualify for a payment agreement may still pay by installment. Certain fees apply.

Delaying Collection — If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves.

Offer in Compromise — Some struggling taxpayers qualify to settle their tax bill for less than the amount they owe by submitting an offer in compromise. To help determine eligibility, use the Offer in Compromise Pre-Qualifier tool.

Additionally,, taxpayers can consider other options for paying taxes owed, including getting a loan to pay the amount due. In many cases, loan costs may be less than the combination of interest and penalties the IRS must charge under federal law.