I am unable to pay my delinquent taxes. Will the IRS accept an Offer in Compromise?
You may qualify for an Offer in Compromise if you are unable to pay your taxes in full or if you are facing severe or unusual economic hardship. Refer to Tax Topic 204, Offers in Compromise, for additional information.
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Can I ask to make installment payments on the amount I owe?
Yes. If you cannot pay the full amount due as shown on your return, you may ask to make monthly installment payments. However, you will be charged a one time user fee of $43.00, and you may be charged a late payment penalty unless you can show reasonable cause for not paying the tax by April 15, even if your request to pay in installments is granted. Before requesting an installment agreement, you should consider less costly alternatives such as a bank loan.
To request an installment agreement, send Form 9465 (PDF), Installment Agreement Request with your return or call 1-800-829-0922. You should receive a response within 30 days. For more details on installment payments, refer to Tax Topic 202, What to do if You Can't Pay Your Tax, or Publication 594 (PDF), Understanding the Collection Process.
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I received an IRS bill for an amended return I filed. I am not able to pay the whole amount at this time. Will the IRS allow me to make monthly payments?
If you cannot pay the full amount due, you may ask to make monthly installment payments. You may be charged a fee for this arrangement. Penalties and interest will continue to accrue on the unpaid amount until the account balance is paid in full. Refer to Tax Topic 202, What to Do if You Can't Pay Your Tax, for more information.
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Can a person receive a tax refund if they are currently in a payment plan for prior year's federal taxes?
You may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. The IRS will automatically apply the refund to the taxes owed. If the refund does not take care of the tax debt; you must continue the installment agreement.
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