There are several payment options you can explore to make repaying your taxes a little easier.
It’s always a good idea to try to pay your taxes in full, and on-time. If you’re unable to, you may incur interest and additional IRS late penalties that can make your bill even higher.
If you’re not able to pay the full amount by the due date, you can request an IRS payment plan. This allows you to set up an installment agreement with the IRS to repay the amount you owe over an extended period of time. It’s generally the best and most affordable way to repay your taxes, although you will incur fees.
Here are a few IRS payment plan options:
- Short-term payment plan - This requires you to repay the amount you owe in 180 days. You’ll accrue interest and late penalty fees for each late month.
- Long-term payment plan - Though the repayment period can vary, this option offers you even more time to repay your tax bill. If you set up automatic payments from your bank account, this plan comes with a $31 setup fee if you apply online; $107 setup fee if you apply by phone, mail, or in-person, and also incurs interest and penalties. If you’re a lower-income individual, some of these fees may be waived.
If you do not enroll in automatic payments, the online fee jumps up to $130, and the phone, mail, or in-person fee jumps to $225. Lower-income individuals may lock in a lower $43 setup fee.
You can sign up for an IRS payment plan (and learn more) when you set up an IRS account.