If you owe the IRS more than you can afford to pay, you have options. Learn about installment agreements, Offer in Compromise, and other relief programs.

IRS Payment Plans and Relief Options

File Even If You Can't Pay

Always file your return by the deadline, even if you can't pay. Failure-to-file penalties are much larger than failure-to-pay penalties.

Installment Agreement

Set up a monthly payment plan with the IRS.

Short-term plan:

Pay in full within 180 days
No setup fee
Interest and penalties continue to accrue

Long-term plan (monthly payments):

Setup fee: $31 (online), $130 (phone/mail)
Reduced to $0 if income is below 250% of federal poverty guidelines

Currently Not Collectible (CNC)

If you're experiencing genuine financial hardship, the IRS may temporarily pause collection activities.

Offer in Compromise (OIC)

Settle your tax debt for less than the full amount owed.

Eligibility requirements:

Filed all required tax returns
Made all required estimated payments
Not in an open bankruptcy proceeding

IRS evaluates:

Ability to pay
Income and expenses
Asset equity

Penalty Abatement

Request removal of penalties if you have a history of compliance and a valid reason (illness, natural disaster, etc.).

First-Time Penalty Abatement

If you've never had a penalty before, you may qualify to have penalties removed automatically.

Struggling with a tax bill? K2 Tax Solutions can negotiate with the IRS on your behalf.

IRS Payment Plans: Options When You Can't Pay