I have a balance due on my return and can’t pay it. Can I set up an IRS payment plan?
- Pay by credit card.
- Borrow from your 401(k).
- Take out a personal loan.
- File for a short-term extension — up to 120 days. This option has:
- No fee
- Penalty of 0.5% per month on unpaid balance
- Interest of short-term federal rate plus 3% (interest might change each quarter)
- Complete IRS Form 1127: Application for Extension of Time for Payment of Tax Due to Undue Hardship.
If you want to request an installment agreement:
- Request an installment agreement with one of these:
- Online payment agreement (OPA)
- Form 9465 — If your liability is more than $50,000, you’ll need to file Form 9465 instead of using the online agreement. You must agree to pay the full amount within three to five years.
- Pay an application fee of $120 ($52 if you make your payments by direct debit). You might qualify to pay a reduced fee of $43 if your income is below a certain level.
What are the tax brackets for U.S. taxes? Review income tax brackets based on your filing status and taxable income and understand how they apply to you.
Wondering how to use your tax refund? You can save your tax refund or pay down debt to improve your financial situation. Learn more at H&R Block.
Deducting property expenses under Section 179? 2018 marks the start of new deduction rules under tax reform. Learn how these changes may affect your business.
You can choose a person to research your IRS account for you. Learn more about IRS Form 8821, Tax Information Authorization, from the experts at H&R Block.