Should I file my tax return before or after setting up an IRS payment plan?

9 The correct order is to file your tax return first, then set up your payment plan. Here's why this makes sense: The IRS needs to process your official tax return before they can establish a payment plan based on the actual amount you owe. When you file, your tax liability becomes "assessed" in their system, which is necessary before a formal payment arrangement can be created. Think of it this way - they need to officially know what you owe before they can help you pay it. You should file your return by the deadline (April 15, 2025) even if you can't pay the full amount. This helps you avoid the failure-to-file penalty, which is much steeper than the failure-to-pay penalty. After filing, you can immediately apply for a payment plan online through the IRS website, by phone, or by submitting Form 9465. Don't worry - this situation happens to many people and the IRS has well-established procedures to help taxpayers who need time to pay.

12 I went through this exact same panic last year! Found myself owing $9k and nearly passed out. I tried calling the IRS for days but couldn't get through to ask about payment plans. Then I found this AI tool called taxr.ai that was super helpful for my situation. The site (https://taxr.ai) has this feature where you can upload your tax documents and it explains everything in plain English - including options for when you can't pay. I ended up getting clarity on exactly what to do: file first, then set up the payment plan right after. What was especially helpful was understanding what payment plan options I qualified for based on my specific situation. Ended up going with a 72-month plan that kept my monthly payments manageable.

17 Just wanted to update - I took the advice about taxr.ai and gave it a try. Super glad I did because I was totally stressing about my tax situation. The analysis showed that I actually missed a few deductions related to some freelance work I did last year. I amended my return before setting up my payment plan and ended up reducing what I owed by about $1,800! The guidance also walked me through exactly how to set up my payment plan after filing - there are different options depending on how much you owe and what timeframe you need. I feel way more confident now about handling this. Don't panic like I did - there are solutions!

4 After trying everything to get through to the IRS about my payment plan last year, I finally found Claimyr (https://claimyr.com) and it literally saved me hours of frustration. It's this service that gets you connected to an actual IRS agent without the endless hold times. They have a demo video here: https://youtu.be/_kiP6q8DX5c showing how it works. I was skeptical at first, but after waiting on hold for 3+ hours myself with no luck, I gave it a shot. They got me through to an actual IRS rep in about 15 minutes. The agent helped me set up a payment plan after I'd already filed my return. They walked me through my options based on my specific situation and helped me choose the plan with the lowest monthly payment I could qualify for.

11 I have to admit I was totally wrong about Claimyr. After posting that skeptical comment, I was still desperate to get through to the IRS about my payment plan, so I decided to try it anyway. I figured it couldn't be worse than what I was already doing. It actually worked exactly as described! I got a call back with an IRS agent on the line about 40 minutes after I signed up. The agent helped me set up a payment plan that worked with my budget. I was shocked because I'd literally spent hours over several days trying to reach someone. For anyone in a similar situation - file your return first, then get help setting up the payment plan. And save yourself the headache of waiting on hold.

3 Don't forget there are different types of payment plans based on how much you owe: If you owe less than $50,000, you can set up an online payment agreement pretty easily through the IRS website. For amounts over that, you'll need to fill out more paperwork. There's also a short-term payment plan (180 days or less) which has no setup fee, or a long-term plan with monthly payments that does have a setup fee. The setup fee is cheaper if you agree to direct debit payments.

8 One thing nobody's mentioned - make sure you check your state tax obligations too! I made the mistake of focusing only on my federal tax debt and completely forgot I also owed state taxes. Had to set up two separate payment plans.