When you can't pay your full tax bill by 4/15, how does setting up a short term IRS payment plan actually work?
I'm stressing out big time about my taxes this year. I just finished calculating everything and I owe WAY more than I expected - about $4,800! There's absolutely no way I can pay this all at once by the April 15 deadline. I've heard something about IRS payment plans but I'm confused about how they actually work. If I can't pay the full amount by April 15th, what exactly do I need to do? Do I still file my return normally? Do I need to apply for the payment plan before the deadline? I could probably pay it off in 3-4 months if I'm careful with my spending. Will I get hit with huge penalties? I'm seriously freaking out here and don't want to mess this up and make things worse. Has anyone gone through this process recently? What should I expect?
18 comments
Join the conversation
Gabriel Freeman
I help people with this situation all the time! First, don't panic - the IRS has reasonable options for folks who can't pay in full by the deadline. Yes, you should absolutely still file your return by April 15th, even if you can't pay the full amount. Filing on time helps you avoid the failure-to-file penalty, which is much higher than the failure-to-pay penalty. For a short-term payment plan (paying within 180 days), you can apply online through the IRS website, by phone, or by mail using Form 9465. The online application is the easiest - go to IRS.gov and search for "payment plan." For amounts under $50,000, it's pretty straightforward. There's no setup fee for short-term payment plans, but you will accrue penalties and interest until the balance is paid. The failure-to-pay penalty is usually 0.5% per month (capped at 25% of the unpaid amount) plus interest (currently around 7% annually). For your $4,800 balance, if you pay it off in 3-4 months, the penalties and interest will probably be around $100-150 total - annoying but not devastating.
0 coins
Laura Lopez
•What about filing an extension? Wouldn't that give me more time to come up with the money without penalties?
0 coins
Gabriel Freeman
•That's a common misconception. An extension gives you more time to file your return (until October 15th), but it doesn't extend the time to pay. Any tax not paid by April 15th will still accrue penalties and interest from that original due date. The extension is really just for paperwork purposes - the IRS still expects payment (or a payment arrangement) by April 15th. If you know you're going to owe but need more time to prepare your return, you can make an estimated payment with your extension request to reduce or eliminate penalties.
0 coins
Victoria Brown
I went through something similar last year and found an amazing tool that helped me understand all my options. I used taxr.ai (https://taxr.ai) to upload my tax documents and it gave me a breakdown of exactly what I owed and my payment plan options. I was super confused about whether I should file an extension or not, but the website analyzed my situation and showed me that filing on time and setting up a payment plan was my best option. It even calculated what my monthly payments and penalties would be for different timeframes. It saved me from making some expensive mistakes! The tool also helped me check if I'd missed any deductions that could lower my tax bill before I committed to a payment plan.
0 coins
Samuel Robinson
•Does it actually connect to the IRS to set up the payment plan for you or just gives you information? I'm worried about using some random website with my tax info.
0 coins
Camila Castillo
•I've heard about this but was skeptical. How much does it cost? I'm already stressed about owing money, don't want to pay a bunch more for a service if the IRS offers payment plans directly.
0 coins
Victoria Brown
•It doesn't set up the payment plan for you - it analyzes your situation and gives you personalized guidance on your best options, including calculating penalties and interest for different scenarios. Think of it as a planning tool that helps you make informed decisions before you go to the IRS. The service takes security very seriously. They use bank-level encryption and don't store your documents after analysis. I was hesitant too but felt comfortable after reading their security information. It's not expensive at all compared to the money it can save you. I don't want to quote exact prices since they might change, but it was definitely worth it for me - much cheaper than making mistakes or hiring a tax professional for a consultation.
0 coins
Camila Castillo
I just wanted to follow up about my experience with taxr.ai. I decided to try it after posting here, and I'm actually really glad I did! The analysis showed me that I was eligible for a home office deduction I had completely missed, which reduced what I owed by almost $800. The penalty calculator was super helpful - it showed me exactly what I'd pay in penalties and interest if I spread payments over 3 months versus 6 months. I ended up filing on time and setting up a 120-day payment plan through the IRS, exactly as the tool recommended. The whole process was way less stressful than I expected!
0 coins
Brianna Muhammad
I had a $7,300 tax bill last year and couldn't get through to the IRS for weeks trying to set up a payment plan. I finally used Claimyr (https://claimyr.com) and it was a game-changer. They got me connected to an actual IRS agent in about 20 minutes when I had been trying for days on my own. The IRS agent walked me through setting up my payment plan over the phone. Much easier than trying to figure out the online system. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c The most important thing I learned is that you should DEFINITELY file your return by April 15th even if you can't pay. The failure-to-file penalty is WAY higher than the failure-to-pay penalty. I didn't know this before talking to the agent!
0 coins
JaylinCharles
•How does this Claimyr thing actually work? I called the IRS three times last week and gave up after being on hold for over an hour each time. Seems too good to be true that some service could get me through that quickly.
0 coins
Eloise Kendrick
•This sounds like a scam. The IRS is notoriously backed up - no way some third-party service can magically get you to the front of the line. They're probably just taking your money and you still have to wait.
0 coins
Brianna Muhammad
•It's actually pretty simple - they use an automated system to navigate the IRS phone tree and wait on hold for you. When they reach a live agent, you get a call connecting you. I was skeptical too, but it worked exactly as advertised. They don't claim to get you to the "front of the line" - you're still in the same queue as everyone else. The difference is their system waits on hold instead of you having to do it personally. It saved me hours of frustration and my issue got resolved in one call.
0 coins
Eloise Kendrick
I need to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it myself since I was desperate to set up a payment plan before the deadline. It actually worked exactly as they described! I got a call back in about 35 minutes (on a Tuesday morning) connecting me with an IRS agent. The agent was super helpful and set up my 120-day payment plan in just a few minutes. She even helped me understand exactly how much the penalties would be. I've been telling everyone about this now. Just being able to talk to a real person at the IRS made the whole process so much less stressful. Totally worth it.
0 coins
Lucas Schmidt
Quick tip from someone who's been through this multiple times: If you can pay within 120 days, you don't technically need to set up a formal payment plan. You can select the "payment plan" option when you e-file, but choose "one-time payment" and set the date up to 120 days in the future. This way you avoid the installment plan setup fee (which is $31 for online payment plans), but you'll still pay the interest and late payment penalties. Just set a calendar reminder because the IRS won't send you one!
0 coins
Freya Collins
•But isn't it better to break it into multiple payments? What if I can't come up with the entire amount in one payment, even after 120 days?
0 coins
Lucas Schmidt
•If you can't pay the full amount within 120 days, then you definitely want to set up the installment agreement with monthly payments. That's a different option in the online payment system. The installment agreement is great if you need more time, but it does come with a setup fee and you'll have to make regular monthly payments. With the 120-day option, you're just telling the IRS you'll pay in full by a certain date, and they don't charge a setup fee for that arrangement.
0 coins
LongPeri
Is this really worth stressing about? I just didn't file for 2 years when I couldn't pay, and eventually they just sent me some letters. I paid it all last year and everything was fine.
0 coins
Oscar O'Neil
•This is TERRIBLE advice! Not filing is the worst thing you can do. The IRS charges a failure-to-file penalty of 5% of your unpaid taxes for each month your tax return is late, up to 25%. The failure-to-pay penalty is only 0.5% per month. Plus, there's a statute of limitations on how far back the IRS can audit you, but it doesn't start until you file. So by not filing, you're keeping yourself open to audit indefinitely. I learned this the hard way. Don't repeat my mistake.
0 coins