What if I can’t pay my tax by the due date?

If you are unable to pay the balance owed when it is due, and payment can be made within a few months of filing, it is recommended to pay as much as possible with the return or extension. The balance should then be paid as soon as possible.

The cost of this would be interest at the federal rate plus .5% monthly for the late payment penalty.

If you have no other tax debts, the IRS will generally accept an installment agreement if the unpaid liability is less then $25,000 and the balance will be paid in full within 5 years. You can apply for an installment plan using Form 9465, Installment Agreement Request.