Information on Notices of Federal Tax Lien, Installment Agreements, Offers in Compromise, and Temporarily Delaying the Collection Process

While the IRS is resuming critical tax administration responsibilities, it will also factor in the wide-ranging impact of COVID-19 on taxpayers.

Visit IRS.gov/payments to find information about making payments and the options available, including those below, for taxpayers who can't pay the amount they owe in full.

Penalties and Interest on Balance Dues

Though interest and late-payment penalties continue to accrue on any unpaid taxes after, the original, July 15 due date, the failure to pay tax penalty rate is cut in half while an installment agreement is in effect. The usual penalty rate of 0.5% per month is reduced to 0.25% per month. For the calendar quarter beginning October 1, 2020, the interest rate for underpayment is 3%.

Installment Agreements

Although taxpayers who were unable to comply with the terms of their Installment Agreements had the option to suspend payments until July 15, 2020, payments must now continue for agreements to remain in effect.

Taxpayers who asked their banks to suspend automatic payment deductions until July 15, 2020 should, if they haven't already, inform their banks to allow those debits to resume, to ensure agreements remain in effect.

Most taxpayers needing to revise their payment plans can do so online. Visit the IRS's Additional Information on Payment Plans webpage for more information.

Offers in Compromise

Taxpayers who can't pay their balance in full might qualify for an Offer in Compromise (OIC). Before spending time and effort to prepare and submit an offer, use the OIC pre-qualifier tool to see if it's a viable option.

Taxpayers with questions about their accepted Offer in Compromise should contact the IRS by calling the number on their accepted offer or recent letter received.

Please note, taxpayers with accepted offers must stay compliant with filing and paying their tax returns, as part of their agreed offer, or are subject to default. Defaults were halted during March 25 – July 15, 2020. Accepted offers involving any delinquent tax return filings or payments may be subject to default after July 15, 2020.

Temporary Delay of the Collection Process

Taxpayers experiencing an economic hardship can contact the IRS to request a temporary delay of the collection process. If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer's financial condition improves. However, penalties and interest continue to accrue until the full amount is paid.

Notices of Federal Tax Lien

For general lien information, taxpayers may refer to the "Understanding a Federal Tax Lien" page on IRS.gov. To get the total amount due on a tax debt, taxpayers may refer to the "View Your Account" page.

If taxpayers cannot find an answer on our website or if they need specific case assistance, they may contact an IRS office as shown in Publication 4235 PDF, Collection Advisory Group Numbers and Addresses. This publication has information on requesting a lien payoff and submitting applications for lien certificates.