Help With Overdue Tax Bill

Woman sitting at a table with bills and a calculator. She is clearly stressed because she has one hand pressed against her forehead.

If you have an overdue tax bill, and don’t have the money to pay it, you have options. Here is a list, followed by information on the penalties and interest you’ll be charged if you don’t make payment arrangements soon. Making some kind of payment arrangement now, even if you can’t pay in full, will stop penalties and interest from accumulating.

Payment Options

  • Pay your tax bill in full at irs.gov/payments. You can pay by electronic funds withdrawal, credit card, and others. You can also pay online at EFTPS.gov, or through your IRS online account.
  • Pay part of your balance
  • Don’t pay anything (not really a valid choice – does not stop penalties and interest)

If You Can’t Pay in Full

  • Pay what you can now
  • Apply for a payment plan or installment agreement; you’ll receive immediate notification of whether it has been approved when you apply online.
  • Apply for an offer in compromise, which allows you to settle your tax debt for less than the full amount. CAUTION: Beware of companies that promise to erase tax debt or settle it for pennies on the dollar. They can’t get you any better results than you will get if you apply for an offer in compromise yourself.
  • Request a temporary delay of the collection process (penalties and interest will continue to accrue).

Important Reminders

  • ALWAYS open and IMMEDIATELY read mail from the IRS!
  • Making payment arrangements now stops any increase in penalties and interest.

Failure to PAY Penalty, Failure to FILE Penalty and Interest

For more information on these charges, see this page of the IRS website. You can also request a First-Time Abatement if you meet certain criteria.

From a live IRS Webinar on January 30th, 2024.

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Gwen Harrison President

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