While many taxpayers receive a refund each year, others may find themselves owing federal taxes. If you're wondering, "What happens if I owe the IRS?"—don’t worry. The IRS offers several options to help you manage your tax obligations, even if you can't pay the full amount right away.
When is my tax payment due?
All tax payments are due by the annual filing deadline, typically April 15. Missing this deadline can result in penalties and interest, so it's important to act quickly if you have a balance due.
What are 10 tips for taxpayers who owe federal taxes?
1. Pay Your Tax Bill Promptly
If you receive a bill for unpaid taxes, pay the full amount—including any penalties and interest—as soon as possible. If you can't pay in full, consider a personal loan to avoid additional IRS fees.
2. Request More Time to Pay
You may qualify for a short extension to pay your tax in full. Use the IRS Online Payment Agreement tool or call 800-829-1040.
3. Pay by Credit Card
Paying with a credit card might be cheaper than accruing IRS penalties and interest. Authorized payment processors include:
Pay1040.com
PayUSAtax.com
OfficialPayments.com
4. Use Electronic Funds Transfer
Pay via the Electronic Federal Tax Payment System (EFTPS) or call 800-555-3453.
5. Set Up an Installment Agreement
If you can’t pay in full, request an installment agreement to pay monthly. You must be current on all tax filings and estimated payments. Visit IRS.gov for more details.
6. Use the Online Payment Agreement Tool
If you owe $50,000 or less (including penalties and interest), you can apply online for a long-term payment plan. If you owe less than $100,000, you may qualify for a short-term plan.
7. Submit Form 9465
Mail Form 9465, Installment Agreement Request, with your bill. The IRS will respond within 30 days. Download Form 9465.
8. Complete a Collection Information Statement
If you owe more than $25,000, you may need to submit Form 433-F. Download Form 433-F.
9. Understand User Fees
Installment agreements come with fees:
- $31 for online applications with direct debit
- $107 for phone/mail/in-person applications with direct debit
- Reduced fees may apply for low-income individuals
10. Adjust Your Withholding
To avoid owing taxes in the future, update your W-4 with your employer. Use the IRS Withholding Calculator to determine the correct amount.
Accidentally paid twice?
If you have accidentally paid the IRS twice, you should contact the IRS directly to resolve the issue. You can call the IRS at 800-829-1040 to explain the situation and request a refund for the duplicate payment. It's important to have your payment details and any relevant documentation ready when you contact them.
If you wish to cancel a scheduled payment, you must do so by 11:59 p.m. ET at least two business days before the scheduled date.
Additional Information
- Get help with tax debt (IRS)
- Publication 594: The IRS Collection Process
- Publication 966: Electronic Payment Options
- Call 800-TAX-FORM (800-829-3676) for printed forms