personal finance

IRS: You have 'options' if you can't pay your taxes by the April 15 deadline

File your return by April 15 even if you can’t pay

The IRS has ‘various payment options’

If you still have a tax balance by April 15, you can apply for “various payment options” online and get an “immediate response” of acceptance or denial, the IRS said in a news release on Friday.

IRS online payment plans, or “installment agreements,” include:

  • Short-term payment plan: This may be available if you owe less than $100,000 including tax, penalties and interest. You have up to 180 days to pay in full.
  • Long-term payment plan: This may be available if your balance is less than $50,000 including tax, penalties and interest. You must pay monthly, and you have up to 72 months to pay off the balance.

You can apply for either plan online, by phone or by mail by sending Form 9465. However, experts say the online option is quick and easy.

“They’re trying to get people back in the system,” Bronnenkant said.

However, you can’t have multiple payment plans from different tax years.

“They don’t want people on continuous payment plans,” he said.

While you will still accrue interest and late-payment penalties after April 15, the failure-to-pay penalty is “cut in half” under an installment agreement, according to the IRS.

You can learn more about the IRS plans, including setup fees and payment options, here.

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