I'm unable to make tax payments to the IRS. What should I do?

For various reasons, you may not be able to pay your tax in full. You should not delay filing your tax return if you are unable to pay the tax.

If you can't pay the IRS the tax amount you owe in full, file your tax return on time and attach to the front either a completed Form 9465, Installment Agreement Request, or your own written request for a payment plan, specifying the tax amount and the date you can pay the IRS each month. If you have already mailed your tax return and have received a tax notice or tax bill from the IRS requesting payment, contact the IRS immediately by calling the telephone number shown on the IRS tax notice. You may be eligible to establish a tax installment agreement by telephone. If you prefer you may attach a completed Form 9465 or your own request to the IRS tax notice and mail it to the appropriate IRS office. The IRS will let you know usually within 30 days, whether your request is approved or denied, or if additional information is needed. If approved, a one-time user fee of $43 will be charged by the IRS.

Before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan. The interest rate your bank charges may be lower than the combination of interest and tax penalties charged by the IRS. Remember, tax penalties and interest will be charged on the balance due even if you have an approved installment agreement.

It is important that you contact the IRS as soon as you become aware of a tax liability that you cannot pay. The IRS makes a distinction between taxpayers making a sincere effort to pay their tax debt and taxpayers who show little or no evidence of cooperation. If you neglect or refuse to make tax payments to the IRS or other arrangements to satisfy your tax bill in full, the IRS may take enforced tax collection action. For additional information concerning tax questions, alternative methods of tax payment, or the nearest location to receive tax assistance, call the IRS at 1-800-829-1040.

If you are unable to pay the tax due and doing so would result in a severe hardship you can apply for a special tax payment extension on Form 1127.

Related information about IRS tax payments
Tax Directory Topics:
Can I make installment tax payments to the IRS?
What are the tax penalties and interest? Can they be avoided?
How to avoid an IRS audit?
How to prepare for an IRS audit?
What are my appeal rights?
How does the Statute of Limitations affect income tax obligations?
How does the Bankruptcy Code affect income tax obligations?
Taxpayer Bill of Rights
Tax Payments and Tax Refunds
Tax Audits, Tax Collections and trouble with the IRS
IRS publications about IRS tax payments:
For further information about IRS tax payments and the appeals process, refer to Tax Topic 151, Your Appeal Rights. Also see IRS Publication 594, Understanding the Collection Process, IRS Publication 1,Your Rights as a Taxpayer, IRS Publication 5, Appeal Rights, IRS Publication 556, Examination of Returns, Appeal Rights.., and IRS Publication 17, Your Federal Income Tax. Please read this IMPORTANT Editor's Note regarding navigating IRS publications with Adobe Acrobat Reader.
IRS publications can also be ordered by calling 1-800-829-3676.
IRS Links:
IRS Appeals
IRS Problem Resolution Office
IRS Taxpayer Advocate
Customer Support
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