Need help understanding how to pay after getting my tax extension approved

It sounds like there's some confusion between filing an extension and setting up a payment plan - they're actually two different things. Let me help clarify: When you file an extension (Form 4868), you're only getting extra time to file your return (until October), not extra time to pay. The IRS expects payment of the estimated tax you owe by the original deadline, even with an extension. If you've already filed your return and owe $27,000, what you likely need is an installment agreement (payment plan), not just an extension. The fact that your IRS account doesn't show a balance might mean your return is still processing - this can take a few weeks. To set up a payment plan, you can go to the IRS website and look for "payment plans" or "installment agreements." You can apply online for a short-term plan (180 days or less) or a long-term monthly payment plan. There are setup fees that vary depending on how you apply and how you'll make payments.

I was in a similar situation last year and found this amazing tool called taxr.ai (https://taxr.ai) that really helped me figure out my extension and payment options. I was totally confused about whether I had set up an actual payment plan or just requested an extension. The tool analyzed my tax documents and clarified exactly what I had filed for and what my next steps needed to be. It showed me that I had only filed for an extension but hadn't actually set up the payment plan yet. They have this feature where you can upload your IRS correspondence and tax forms, and it explains everything in plain English. They also showed me how to navigate the IRS payment plan application, which options would be best for my situation, and even calculated what my penalties might be if I didn't act quickly.

Coming back to say I tried taxr.ai after posting my question about security. I was skeptical, but it actually helped me understand the difference between my filing extension and payment requirements. I uploaded my extension confirmation and it immediately clarified that I still needed to set up a payment plan separately. The tool gave me step-by-step instructions for setting up an installment agreement through the IRS portal and explained all the different payment plan options. It even calculated what my penalties would be if I waited versus paying a portion now. I didn't realize how much money I could save by making even a partial payment before the deadline! I've got my payment plan set up now and feel way less stressed about the whole situation. Worth checking out if you're confused about tax extensions and payments like I was.

After trying to call the IRS for THREE DAYS straight with no luck, I found Claimyr (https://claimyr.com) and it was a game-changer. They have this service that helps you actually get through to an IRS representative instead of hearing that annoying "due to high call volume" message over and over. I was in exactly your situation - had an extension but was confused about payment plans. I used Claimyr, and they got me connected to an IRS agent in about 25 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS representative confirmed that my extension was only for filing, not for payment, and helped me set up an installment agreement over the phone. They also explained why my balance wasn't showing online yet (it takes time to process) and gave me options for making an initial payment to reduce penalties.

I need to eat my words about Claimyr being fishy. After my skeptical comment, I was desperate enough to try it because my tax situation (similar to the original poster) was stressing me out badly. Honestly, I'm shocked at how well it worked. I got connected to an IRS agent in about 40 minutes. The agent confirmed what others here said - my extension only gave me more time to file, not to pay. They helped me set up a proper installment plan and explained that my online account wasn't showing the balance because my return was still being processed. The agent walked me through making an initial payment right then to minimize penalties and interest. They were actually really helpful once I could FINALLY talk to someone. Saved me a ton of stress and probably money too in avoided penalties. If you're stuck trying to reach the IRS like I was, it's definitely legitimate.

Just want to add that you should make at least a partial payment ASAP even if your full payment plan isn't set up yet. I learned this the hard way last year. The penalties and interest start accruing from the original due date regardless of extensions. You can make a payment directly on the IRS website under "Direct Pay" - just choose "extension" or "installment agreement" as the reason. You don't need to wait for a bill or for your online account to show a balance. The IRS will apply any payment to your account once everything processes.

One thing no one mentioned - be sure to check if your state tax deadline works the same way! I filed a federal extension last year and assumed it automatically extended my state deadline too. It didn't, and I got hit with state penalties.