NEW YORK – As the IRS tax deadline approaches, the agency has reminded taxpayers that they can avoid late-filing penalties and interest by filing their tax return and making payment before April 18. For taxpayers who cannot pay by the deadline, the IRS offers various options to help them.
The IRS also offers several ways for people to apply for an extension, get information to help them file their taxes, and learn about payment options if they have trouble paying by the April 18 deadline.
Eligible individuals and families who earned $73,000 or less in 2022 can use IRS Free File, only available at IRS.gov, to file their taxes electronically. All taxpayers, regardless of income, who need more time to file can use IRS Free File as a quick and easy way to electronically file a six-month extension by April 18, 2023. extension will help avoid penalties and interest for not filing on time and gives taxpayers until October 16, 2023 to file their return. However, they still have to pay what they owe before the April 18 deadline.
Except for some victims of recent natural disasters who have until October 16 to make multiple tax installments, taxpayers who cannot pay the full amount of tax by April 18 must file and pay what ‘they can to reduce the total penalties and interest.
There are several ways to make electronic payments and options for a payment plan or agreement.
IRS online account
An IRS online account provides access to important information when preparing a tax return, paying a balance, or tracking notices. Taxpayers can view:
- Adjusted gross income.
- Payment history and any scheduled or pending payments.
- Payment plan details.
- Digital copies of certain IRS notices.
Taxpayers can also use their online account to securely make an immediate payment of an outstanding balance for 2022 taxes.pay estimated quarterly taxes for the 2023 tax season or request an extension to file a 2022 return.
Interest, plus a late payment penalty, will apply to any payment made after April 18. Making a payment, even partial, will help limit penalties and interest charges.
Other options for paying electronically
Direct Payment, available only at IRS.gov, is the fastest and easiest way to make a one-time payment without logging into an IRS online account.
- Direct Pay: Direct Pay is free and allows taxpayers to securely pay their federal taxes directly from their checking or savings account, without fees or pre-registration. Taxpayers can schedule payments up to 365 days in advance. After submitting a payment via Direct Pay, taxpayers will receive immediate confirmation.
- Electronic Funds Withdrawal: This option allows taxpayers to deposit and pay electronically from their bank account when using tax preparation software or a tax practitioner. This option is free and only available when filing a tax return electronically.
- Electronic Federal Tax Payment System: This free service provides taxpayers with a secure and convenient way to pay personal and business taxes over the phone or online. To register and get more information, taxpayers can call 800-555-4477 or visit eftps.gov.
- Debit or credit card or digital wallet: People can pay online, over the phone, or with a mobile device through one of the authorized payment processors. The processor charges a fee. The IRS receives no payment for these services. Authorized card processors and phone numbers are available at IRS.gov/payments.
Other payment methods:
- In liquid: For taxpayers who prefer to pay cash, the IRS offers a way to pay taxes with one of our companies that processes cash payments at a participating outlet. The IRS urges taxpayers choosing this option to start early because it involves a four-step process. Details, including answers to frequently asked questions, can be found at pay cash with a retail partner.
- Check or Money Order: Payments made by check or money order should be made payable to the US Treasury. To ensure payment is made promptly, taxpayers should also attach proof of payment from 2022 Form 1040-V and print the following on the front of the check or money order:
- “2022 Form 1040”
- name
- address
- Phone number
- Social Security number
For taxpayers who cannot pay the full amount
The IRS encourages you to pay what you can and to consider a variety of available payment options for the remaining balance, including taking out a loan to pay the amount owed. In many cases, the loan costs may be less than the combined interest and penalties the IRS must collect under federal law. Act ASAP: Tax bills rack up more interest and fees the longer they go unpaid. To learn more about all payment options, visit IRS.gov/payments.
online payment plans
Most taxpayers are eligible for a payment plan and can use the online payment plan application to set up a payment plan (including an installment agreement) to pay an outstanding balance.
Once the online application is completed, the taxpayer receives immediate notification as to whether their payment plan has been approved. Taxpayers can establish a plan in minutes. There is no paperwork and no need to call, write or visit the IRS. Some types of plans may incur setup fees.
Online payment plan options for individual taxpayers include:
- short term payment plan: The total balance due is less than $100,000 in taxes, penalties and interest combined. Additional period of up to 180 days to pay the full balance.
- Long Term Payment Plan (Installment Agreement): The total balance due is less than $50,000 in taxes, penalties and interest combined. Pay in monthly installments for up to 72 months. Payments can be set up via direct debit (direct bank debit), which eliminates the need to send a payment each month, saves on postage costs and reduces the risk of payment default. For balances between $25,000 and $50,000, direct debit is required.
Eligible taxpayers with existing payment plans can use the online payment agreement request to make changes, including changing payment dates, payment amounts, or banking information for payments made by direct debit. For more information, see the Request a payment plan page.
Although interest and late payment penalties continue to accrue on unpaid taxes after April 18, the late payment penalty rate is halved as long as an installment agreement is in effect. You can find more information about payment plan costs on the IRS’ Additional Information About Payment Plans webpage.
Other payment options
Taxpayers who are having difficulty meeting their tax obligations may also consider these additional payment options:
- Offer in Compromise – Some taxpayers can settle their tax liability for less than they owe by filing an Offer in Compromise. To help them determine their eligibility, they can use the Offer in Compromise Prequalification Tool. To help taxpayers prepare their own valid Offers in Compromise, the IRS has created a list of videos — also available in English and Chinese — that walk them through the necessary documents.
- Temporary deferral of collection processing – Taxpayers can contact the IRS to request a temporary deferral of collection processing. If the IRS determines that a taxpayer cannot pay, it may delay collection until the taxpayer’s financial situation improves. Penalties and interest will continue to accrue until the full amount is paid.
- Other payment plan options: Taxpayers who are not eligible for online self-service should contact the IRS at the phone number or address listed on their most recent notice for other payment plan options . For individuals and sole proprietors whose businesses have gone out of business – who are already working with the IRS campus collection office and who owe $250,000 or less – an available option is to offer a monthly payment that will repay the balance for the term of the Collection Status (usually 10 years). These payment plans do not require a financial statement, but the provision for filing a notice of federal tax lien still applies.
For more information about payments, see Topic 202, Tax Payment Options, on IRS.gov.
taxpayers’ rights
The IRS reminds taxpayers that they have rights and protections throughout the collection process. For more details, see the Declaration of Taxpayer Rights and Publication 1, Your Rights as a Taxpayer.
Taxpayers must be informed before having a tax debt. The IRS encourages all taxpayers to verify their withholding tax with the IRS Withholding Tax Estimator.
Make sure you hire someone who is qualified to file your taxes, here are some tips to keep in mind.