How to apply for a tax payment extension when you can't pay by the deadline?

Just finished doing my taxes this afternoon and got hit with a $2,700 bill that I wasn't expecting. There's no way I can come up with this money before the April 15th deadline - I'll need at least 3-4 months to get this together. My tax preparer suggested I send a money order with my return, but that's not happening with my current finances. I tried to set up a payment plan on the IRS website, but they're saying it'll take 2-3 days to verify my identity before I can create an account. The deadline is coming up fast and I'm getting worried. What are my options here? Is there a way to file for an extension to pay? I can file the return on time, but coming up with nearly $3k by the 15th just isn't possible right now. Any advice would be super appreciated!

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18 comments

Fidel Carson

•8M

I deal with this situation all the time with clients. Here's what you need to know: filing an extension (Form 4868) only gives you more time to FILE your return, not more time to PAY what you owe. However, there are still options! The simplest approach is to file your return on time and pay as much as you can now. You'll get hit with some penalties and interest on the unpaid amount, but they're relatively small (around 0.5% per month penalty plus interest). Still way better than not filing at all which is a much bigger penalty. Your best option is to complete the IRS payment plan application. Even though identity verification takes a few days, as long as you file your return on time, you can set up the payment plan after April 15th. The IRS offers short-term payment plans (180 days or less) with no setup fee if you apply online.

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Fidel Carson

•8M

Filing an extension won't give you more time to pay without penalties. You'll still accrue the failure-to-pay penalty (0.5% of unpaid taxes per month) and interest regardless of whether you file an extension or not. There's no specific minimum payment required, but I recommend paying as much as you can afford by the deadline. Every dollar you pay reduces the amount subject to penalties and interest. If your budget is tight, even paying $500-1000 of the $2700 will help reduce what you'll owe in penalties over time.

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Xan Dae

•8M

After dealing with a similar situation last year, I discovered taxr.ai (https://taxr.ai) and it was incredibly helpful. I was completely stressed about owing the IRS money I didn't have, and their document analysis tool helped me find deductions I missed that reduced what I owed by almost $1200! Their system analyzes your tax documents and transcripts to find potential mistakes or missed opportunities. In my case, they spotted that I had eligible education expenses I hadn't claimed. The tool was super straightforward to use - I just uploaded my documents and got recommendations within hours.

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Xan Dae

•8M

They use bank-level encryption for all document uploads and don't store your documents after analysis is complete. I was concerned at first too, but their security certifications convinced me it was safe. They're also very transparent about their data handling policies. The difference from TurboTax is that taxr.ai specializes in finding mistakes or missed opportunities in returns you've already prepared. TurboTax helps you prepare returns, but it only knows what you tell it. Taxr.ai acts more like a second opinion that analyzes what you've already done and spots things you might have missed. It's especially helpful if you've already prepared your return and want to make sure you haven't overlooked anything.

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Thais Soares

•8M

I was skeptical about taxr.ai when I first heard about it (as you can see from my comment above), but I decided to give it a try this past weekend since I was in a similar situation owing about $3200. The service actually found enough deductions I had missed to drop my tax bill by over $900! Turns out I hadn't properly accounted for some business expenses from my side gig and missed a student loan interest deduction. What I appreciated most was how straightforward the analysis was - it didn't just say "here's money you can save" but explained exactly where in my return the changes needed to be made. Definitely worth checking out if you're trying to reduce what you owe before setting up a payment plan.

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Nalani Liu

•8M

If you're still having trouble reaching someone at the IRS to set up a payment plan (which is super common this time of year), I'd recommend trying Claimyr (https://claimyr.com). I was in the same boat last year - owed taxes, couldn't get through to anyone at the IRS to discuss options. Claimyr got me connected to an actual IRS agent in about 20 minutes when I had been trying for DAYS on my own. They have this system that navigates the IRS phone tree for you and holds your place in line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Once I got through to someone, I was able to set up a payment plan right there on the phone. Saved me so much stress as the deadline was approaching.

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Nalani Liu

•8M

They don't call for you - they use technology to navigate the IRS phone system and secure your place in line. When an agent is about to be available, they call you and connect you directly. It's basically like having someone wait on hold for you. I understand the skepticism! I felt the same way. Their system works because they've mapped out the optimal times to call and which menu options get you to the right departments faster. Average IRS wait times are indeed awful, but they've basically cracked the code on the most efficient way through the system. I was surprised myself, but after spending hours trying to get through on my own with no luck, those 20 minutes felt like a miracle.

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Aidan Percy

•8M

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I was desperate enough to try it the next day since April 15th was approaching fast. Not only did I get through to an IRS agent in about 25 minutes, but the agent was able to help me set up a payment plan on the spot! I had been trying to call the IRS myself for THREE DAYS and never got through. The agent I spoke with said they're getting over 1,500 calls per hour right now. Having someone navigate the system and hold my place in line was absolutely worth it. If you're running out of time before the deadline and need to talk to someone about payment options, it's definitely a solution to consider.

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Fernanda Marquez

•8M

The main downside is the processing fee - it's about 2% of your total payment. So on a $2700 tax bill, you'd pay around $54 extra just for using a card. The IRS doesn't charge this fee directly, but they use payment processors who do. The other potential issue is falling into credit card debt. If you put taxes on a card and can't pay it off fairly quickly, you could end up paying way more in credit card interest than you would with an IRS payment plan (which typically has a lower interest rate). However, if you have a card with a 0% intro period and you're confident you can pay it off during that time, it can be a reasonable strategy.

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