Payment of taxes, know the options

If you’re not able to pay the tax you owe by your original filing due date, the balance is
subject to interest and a monthly late payment penalty. There’s also a penalty for failure
to file a tax return, so you should file timely even if you can’t pay your balance in full. It’s
always in your best interest to pay in full as soon as you can to minimize the additional
charges.

Direct Pay

IRS Direct Pay is a secure service you can use to pay your taxes for Form 1040 series,
estimated taxes or other associated forms directly from your checking or savings
account at no cost to you. Complete the five easy steps and you’ll receive instant
confirmation after you submit your payment. With Direct Pay, you can use the “Look Up
a Payment” feature to view your payment details and status. You can opt in to receive
email notifications about your payment. You can also modify or cancel your payment
up to two business days before your scheduled payment date.

Pay by Mail

If you decide to pay by mail, enclose a check or money order with a copy of your tax
return or notice. Make it payable to the United States Treasury and provide your name,
address, daytime phone number, taxpayer identification number, tax year, and form or
notice number (for example, 2022 Form 1040) on the front of your payment.

Short-Term Payment Plans (up to 180 days)

If you can’t pay in full immediately, you may qualify for additional time –up to 180 days– to pay in full. There’s no fee for this full payment; however, interest and any applicable penalties continue to accrue until your liability is paid in full. Individuals may be able to set up a short-term payment plan using the Online Payment Agreement (OPA)
application or by calling us at 800-829-1040 (individuals). See telephone assistance for
hours of availability.

Payment Plans (Installment Agreements)

If you’re not able to pay your balance in full immediately or within 180 days, you may
qualify for a monthly payment plan (including an installment agreement). To request a
payment plan, use the OPA application, complete Form 9465, Installment Agreement
Request, and mail it to us, or call the appropriate telephone number listed below. A
payment plan allows you to make a series of monthly payments over time. The IRS offers
various options for making monthly payments:

• Direct debit from your bank account,
• Payroll deduction from your employer,
• Payment by EFTPS,
• Payment by credit card or debit card via phone or Internet,
• Payment via check or money order,
• Payment with cash at a retail partner.

The IRS charges a user fee when you enter into a payment plan; however, if you are a
low-income taxpayer, this user fee is reduced and possibly waived or reimbursed when
certain conditions apply.

Offer in Compromise

An Offer in Compromise (OIC) is an agreement between you and the IRS that resolves
your tax liability by payment of an agreed upon reduced amount. Before the IRS will
consider an OIC, you must have filed all tax returns, have received a bill for at least one
tax debt included on the offer, made all required estimated tax payments for the
current year, and made all required federal tax deposits for the current quarter and the
two preceding quarters if you are a business owner with employees. If you are in an
open bankruptcy proceeding, you aren’t eligible to enter into an OIC.

Topic No. 202 Tax Payment Options (17-Feb-2023) Internal Revenue Service. Available
at: https://www.irs.gov/es/taxtopics/tc202.