How to pay the IRS directly

If you owe back taxes to the IRS, you can pay online, by phone, by mail, or in person. The IRS website (irs.gov) lists all current payment methods. Online payment through their approved payment processors is usually the fastest route — you can pay the same day you decide to, and you'll get immediate confirmation of the transaction.

You'll need your Social Security number or Individual Taxpayer Identification Number, the tax year you owe for, and the exact amount. If you're unsure of the amount, you can request a transcript from the IRS showing what they have on record. The IRS also accepts payment by phone through their automated system or by speaking to a representative, though phone lines can have long wait times.

Mailing a check or money order is slower but works if you prefer not to use the internet. Include your name, Social Security number, the tax year, and a note saying "payment for back taxes" on the check itself. Mail it to the address listed on your tax notice or on irs.gov for your state.

Key Takeaways

  • You can pay the IRS online the same day through their approved payment processors, or by phone, mail, or in person at an IRS office.
  • Have your Social Security number, the tax year owed, and the exact amount ready before you start the payment process.
  • If you cannot pay the full amount at once, you can set up a payment plan (called an installment agreement) directly with the IRS.
  • The IRS charges interest and penalties on unpaid taxes, and these grow each month, so paying sooner rather than later costs you less overall.
  • If you owe a large amount and cannot pay, you may be able to request an offer in compromise or temporary delay of collection, though these have strict requirements.

Setting up a payment plan with the IRS

If you cannot pay the full amount right away, the IRS allows you to set up an installment agreement — a monthly payment plan. You can request this online through irs.gov, by phone at 1-800-829-1040, or by mail. The IRS will tell you the monthly amount based on what you owe and how long you want to take to pay it off.

There is a setup fee for an installment agreement, which varies depending on how you set it up. Online setup costs less than phone or mail. Once approved, you make monthly payments on a schedule the IRS sets. If you miss a payment, the agreement can be cancelled and the full amount becomes due immediately.

A payment plan does not stop interest and penalties from building. You will pay more overall than if you paid in full, because interest continues to accrue on the unpaid balance each month. However, a payment plan stops the IRS from taking collection actions like wage garnishment or bank levies while you are making your payments on time.

Understanding interest and penalties on back taxes

The IRS charges two separate costs on unpaid taxes: interest and penalties. Interest is calculated as a percentage of the unpaid tax and compounds daily. The rate changes quarterly. Penalties are separate charges — the most common is the failure-to-pay penalty, which is a percentage of the unpaid tax and also grows each month you do not pay.

Both interest and penalties continue to grow whether you pay in full, set up a payment plan, or do nothing. This is why the longer you wait, the more you owe. If you owe $5,000 in taxes today, you might owe $5,500 or more by the time you pay six months from now, even if you make no additional tax mistakes.

The IRS can remove or reduce penalties in some situations — for example, if you have a clean tax history and this is your first penalty, or if you had a serious illness or death in your family that prevented you from paying on time. You have to request this in writing and explain your situation. Interest, however, is rarely removed.

What happens if you ignore an IRS bill

If you do not respond to an IRS notice or make a payment arrangement, the IRS can take collection actions. These include placing a lien on your property (a legal claim against your house or other assets), garnishing your wages (taking money directly from your paycheck), or levying your bank account (seizing money from your accounts).

A lien does not take your property, but it makes it hard to sell or refinance your home because the IRS has a legal claim to the proceeds. A wage garnishment or bank levy is immediate — the IRS can take the money without asking your permission first. Once these actions start, they are difficult to stop without paying or setting up a formal agreement.

The longer you wait, the more aggressive collection becomes. If you receive a notice that says "Final Notice of Intent to Levy," this means the IRS is about to take collection action and you have a limited window to respond. At this point, contacting the IRS or a tax professional becomes urgent.

Requesting an offer in compromise or temporary relief

An offer in compromise is a formal request to the IRS to accept less than the full amount you owe. This is not forgiveness — it is a settlement. The IRS only accepts offers in compromise when they believe you cannot pay the full amount, even over time. You have to provide detailed financial information showing your income, expenses, and assets.

The IRS evaluates offers based on what they think they could collect from you through wages, bank accounts, or property sales over the next ten years. If that number is less than your offer, they may accept it. The process takes several months and requires you to submit Form 656 and detailed financial statements.

If you are in financial hardship and cannot pay right now, you can also request a temporary delay of collection (called "currently not collectible" status). This pauses collection actions for a period of time while you recover financially. Interest and penalties still grow, but the IRS stops garnishing wages or levying accounts. This is not permanent — the IRS can restart collection later.

Working with a tax professional or the IRS Taxpayer Advocate

If your situation is complex — you owe a large amount, you have multiple years of unpaid taxes, or you have already had wage garnishment or liens placed — working with a tax professional, enrolled agent, or CPA can help. These professionals can negotiate with the IRS on your behalf and help you understand which payment option makes sense for your situation.

If you believe the IRS has made an error or treated you unfairly, you can contact the Taxpayer Advocate Service, which is a free office within the IRS that helps taxpayers resolve disputes. You do not need a lawyer or tax professional to use this service. The Taxpayer Advocate can intervene if you are in financial hardship or if the normal IRS process is not working.

Be cautious of companies that promise to settle your tax debt for pennies on the dollar or may provide removal of penalties. These claims are usually false. The IRS sets the rules for offers in compromise and penalty removal, and no private company can change those rules.

Frequently Asked Questions

Can I pay the IRS with a credit card or payment app?

Yes, but only through approved payment processors listed on irs.gov. The IRS does not accept credit cards directly. When you pay through an approved processor, they charge a convenience fee (usually 1.87% to 2.35% of the amount) on top of your tax bill. This fee is not deductible.

What if I cannot afford to pay anything right now?

Contact the IRS and explain your situation. You can request currently not collectible status, which temporarily stops collection actions while you are in financial hardship. Interest and penalties continue to grow, but wage garnishment and bank levies pause. You can also explore an offer in compromise if your situation is unlikely to improve.

How long do I have to pay before the IRS takes collection action?

The IRS typically sends multiple notices before taking action, but there is no fixed timeline. Once you receive a Final Notice of Intent to Levy, you have about 30 days to respond before collection actions begin. Do not wait for this notice — contact the IRS as soon as you receive the first bill.

Will setting up a payment plan remove the lien on my property?

No. A lien stays in place until the tax debt is paid in full or until the IRS releases it. However, once you have a payment plan in place and are making payments on time, the IRS is less likely to take additional collection actions. You can request the lien be released once the debt is paid.

Can I deduct the interest and penalties I pay on back taxes?

Interest on back taxes is not deductible. Penalties are also not deductible in most cases. This is one reason why paying as soon as possible costs less — you cannot recover these costs through your taxes.