If You’ve Filed but Haven’t Paid

If you filed on time but didn’t pay all or some of the taxes you owe by the deadline, you could face interest on the unpaid amount and a failure-to-pay penalty. The failure-to-pay penalty is equal to one half of one percent per month or part of a month, up to a maximum of 25 percent, of the amount still owed. The penalty rate is cut in half — to one quarter of one percent — while a payment plan is in effect.

Interest and penalties add to the total amount you owe. The sooner and the more you pay, even though it’s late, the less you will end up owing.

In addition, you may take advantage of a variety of electronic and other payment options, such as using charge or debit cards to pay your taxes, to make it easier, or apply for a payment plan.

Electronic Options

Electronic payment options are convenient, safe and secure methods for paying taxes or user fees. You can make payments online, by phone using a credit or debit card, or through the Electronic Federal Tax Payment System.

Installment Agreements

If you can’t pay all or some of the taxes you owe, you can apply for an installment agreement. The agreement allows you to pay any taxes you owe in monthly installments. If you owe $25,000 or less, you may apply for a payment plan electronically, using the Online Payment Agreement application. You must show the amount of your proposed monthly payment and the date you wish to make your payment each month.

The IRS charges $105 for setting up the agreement or $52 if the payments are deducted directly from your bank account ($43 for qualified lower-income taxpayers).The IRS will automatically give you the low income installment agreement fee if you qualify; you do not have to request it.

You are required to pay interest plus a late payment penalty on the unpaid taxes for each month or part of a month after the due date that the tax is not paid.