If you owe the IRS and can't pay it all

File on time even if you can't pay

• Failure-to-file penalty: 5% of what you owe for each month or part of a month late, up to 25%. If you file more than 60 days late, the minimum penalty is $525 for returns due in 2026 and $535 for returns due in 2027 (or 100% of the tax, if that's less).
• Failure-to-pay penalty: 0.5% of what you owe for each month or part of a month, also up to 25%.
• An extension (Form 4868) gives you up to 6 more months to file, but not to pay: interest and the failure-to-pay penalty run from the original due date.

Pay what you can now

• IRS Direct Pay: from your bank account, free, no account needed.
• Your IRS Online Account: pay the same day or schedule payments.
• Debit or credit card, through authorized processors that charge a fee (none of the fee goes to the IRS).
• Cash at participating stores: $1.50 per payment, up to $500 per payment, and start early because you get a barcode first.
• Check or money order payable to "U.S. Treasury", with your name, address, phone, Social Security number or ITIN, tax year and form. Never mail cash.

Every dollar you pay now stops adding penalties and interest.

Payment plans

If you have low income, the fee is waived with direct debit; without direct debit it drops to $43, which may be reimbursed if certain conditions are met.

You can apply online (you need an IRS Online Account with photo ID), with Form 9465, or by phone at 800-829-1040. If you filed on time, the failure-to-pay penalty drops to 0.25% a month while the plan is in effect.

Interest and some penalties keep adding up until you pay in full: the longer the plan, the more you pay. Any future refund will go toward your balance. If you can't make a payment, contact the IRS right away: if you stop paying, the plan can be terminated.

Interest

The IRS charges interest on what you owe from the original due date, and on penalties too. The rate is the federal short-term rate plus 3 points, it changes every quarter and it compounds daily. For October to December 2026 it's 7% a year.

If you can't pay even with a plan

• Offer in Compromise: it may let you settle your debt for less. You must have filed all your returns, made required estimated payments, and not be in an open bankruptcy; the IRS has a tool to check whether you qualify. It costs $205 plus an initial payment, except for low-income taxpayers. The IRS recommends looking at the other options first.
• Temporary delay of collection (Currently Not Collectible): if paying would keep you from covering basic living expenses, the IRS can pause collection. The debt doesn't go away, penalties and interest continue, your refunds go toward the debt, and the IRS may file a federal tax lien.
• The IRS "Get help with tax debt" tool walks you through a few questions to the option that fits you.

Ask to have penalties removed

If you filed and paid on time for the 3 prior years, starting with 2025 returns the IRS may automatically skip failure-to-file and failure-to-pay penalties (Automatic Exemption from Penalty). You don't have to ask: if you qualify, the IRS sends you a notice. If you get a notice with a penalty and believe you qualified, call the number on the notice; during the transition you can still request First Time Abate. There's also relief for reasonable cause. When a penalty is removed, the interest on that penalty goes down too.

Free help, and watch out for scams

• The Taxpayer Advocate Service (TAS) helps for free if an IRS problem is causing you financial hardship: 877-777-4778.
• Low Income Taxpayer Clinics (LITCs) are independent from the IRS, charge little or nothing, and can help in other languages.
• The IRS usually contacts you first by postal mail. It never calls to demand immediate payment with a specific method, such as gift cards, prepaid debit cards or wire transfers, and never threatens to bring in the police or immigration.
• Checks and money orders are always payable to "U.S. Treasury", never to a person or company. Pay only through IRS.gov or the processors listed on IRS.gov. If you doubt a notice, look for it in your IRS Online Account or call the IRS directly.