How long do I have to pay after filing my returns? Any time to set up payment options?

So I just submitted my tax return last week and it got accepted, but I'm realizing I don't actually have the money to pay the full amount right now (ugh, didn't plan well this year). I owe about $3,200 which is way more than I expected. I know I need to pay, but I'm wondering how much time I actually have before the IRS starts charging me penalties or interest or whatever. Also, is there some kind of payment plan I could set up? I'd probably need at least 6 months to pay this off comfortably. I've never owed this much before so I'm kind of freaking out. Anyone know the deadlines or what my options are at this point? Thanks!!

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18 comments

Issac Nightingale

•8M

You have until the tax deadline (April 15, 2025) to pay what you owe, regardless of when you filed. If you can't pay in full by then, you definitely should set up a payment plan with the IRS. The good news is that setting up a payment plan is pretty straightforward. You can apply online for an installment agreement through the IRS website. For amounts under $50,000, you can typically get approved automatically. There is a small setup fee (which is reduced if you opt for direct debit payments), but it's much less than the penalties and interest you'd face without a plan. Speaking of penalties - if you don't pay by the deadline, the IRS charges both penalties and interest. The failure-to-pay penalty is usually 0.5% of your unpaid taxes per month, and interest compounds daily at the federal short-term rate plus 3%.

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Issac Nightingale

•8M

No, a payment plan doesn't stop all penalties, unfortunately. You'll still be charged interest on the unpaid balance, and there may still be a reduced failure-to-pay penalty (usually 0.25% instead of 0.5% per month). For the length of the plan, standard installment agreements can go up to 72 months (6 years), depending on how much you owe. For your amount ($3,200), you could definitely spread it over 12 months or longer if needed. The IRS generally wants you to pay as quickly as you can, but they're reasonable about setting up a timeframe that works with your budget.

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Marina Hendrix

•8M

I was in literally the exact same situation last year! I was panicking about owing $4,250 and couldn't pay it all at once. I tried calling the IRS multiple times but couldn't get through, then I found this service called taxr.ai (https://taxr.ai) which was super helpful for figuring out my payment options. They analyzed my tax situation and showed me exactly what payment plan I qualified for and how to apply. It also helped me understand what penalties I'd face if I didn't set something up by the deadline. What's nice is they explain everything in normal human language instead of confusing IRS jargon. They even showed me how to calculate the total cost (with interest) for different payment timelines so I could pick the best option.

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Marina Hendrix

•8M

They don't set up the payment plan for you, but they walk you through exactly how to do it yourself and what options to select. I found it way easier than trying to figure out the IRS website on my own. They do charge for their service, but for me it was worth it because I was able to understand all my options clearly, and it saved me from making mistakes that would have cost more in the long run. If you're comfortable navigating the IRS website yourself, you might not need it though.

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Tyler Murphy

•8M

If you're having trouble reaching the IRS to ask questions about payment plans (which I definitely did), try using Claimyr (https://claimyr.com). They have this system that gets you through to an actual IRS agent without the insane hold times. Check out this video to see how it works: https://youtu.be/_kiP6q8DX5c I used it when I needed to ask specific questions about my payment plan options that weren't clear on the website. Was able to get answers about penalty waivers and interest calculations that saved me money in the long run. The IRS actually has more flexibility than what's shown on their website, but you need to talk to a real person to access some options.

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Tyler Murphy

•8M

It's completely legitimate. They use a technology that continuously redials and navigates the IRS phone system for you, then calls you once they've reached an agent. It's not "cutting the line" - they're just doing the waiting and navigating for you. They aren't affiliated with the IRS, they're a third-party service that solves the problem of ridiculous hold times. I was skeptical too until I tried it and was connected to an IRS agent within an hour when I had previously spent days trying without success.

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Alana Willis

•8M

OK I was the skeptic above but I have to admit I tried Claimyr and it actually worked! After failing to get through to the IRS for two weeks straight (kept getting the "call volume too high" message and disconnects), I gave it a shot. Within 45 minutes I was talking to an actual IRS agent who helped me figure out my payment plan options. The agent explained I could qualify for a reduced installment agreement setup fee since my income was below a certain threshold - something I wouldn't have known from just the website. Ended up saving like $50 on the setup fee alone, plus got confirmation that my first payment didn't need to be made until next month, giving me time to budget for it.

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Butch Sledgehammer

•8M

Yes, there is a First Time Penalty Abatement that the IRS offers if you haven't had any penalties in the past 3 tax years. You usually need to call and request it, and they don't automatically tell you about it. It won't waive the interest, but it can remove the failure-to-pay penalties. Definitely worth asking for if this is your first time owing or being late with payment. You typically need to have paid the tax or set up a payment plan before requesting the abatement.

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