This article was published by the IRS.

Taxpayers don’t need to wait until April 15 to file their 2024 federal return, and if they owe and are unable to pay the balance in full, there are payment plans available to help them pay their tax obligation.

Tax returns for 2024 are due on April 15, 2025, with exceptions for taxpayers in a disaster area, combat zone or living and working abroad. April 15 is also the deadline for making tax payments to avoid late charges such as interest and the late payment penalty.

The IRS urges those who cannot pay their full balance to file and pay as much as they can on or before April 15. Filing on time avoids the late filing penalty, which is usually 5% per month on the unpaid balance.

In addition, by paying at least part of what they owe on time, taxpayers can reduce the amount of interest and late payment penalty that will be added to any payments made after April 15. Currently, the interest rate is 7% per year, compounded daily, and the penalty rate is usually 0.5% (one-half of one percent) per month.

For anyone with unpaid tax, the IRS cautions that requesting an extension is not a solution because it only gives a taxpayer more time to file, not more time to pay.

Online payment plan options

Most individual taxpayers qualify for a payment plan. The quickest and easiest way to set up a payment plan is through the Online payment agreement, available on IRS.gov. Setup fees may apply.

* Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. This gives a taxpayer up to 180 days to pay their balance in full.

* Long-term payment plan – New Simple payment plan criteria make it easier and more accessible to enter a long-term payment plan when the total balance owed is less than $50,000 in combined tax, penalties and interest. Taxpayers may pay in monthly payments for up to the collection statute, usually 10 years. Payments may be set up using direct debit (automatic bank withdrawal), which eliminates the need to send in a payment each month, saves postage costs and reduces the chance of default. Taxpayers should remember that extending the time to pay will increase the applicable interest, penalties and fees.

Once the online application is complete, the taxpayer is notified immediately whether their plan is approved. There’s no paperwork and no need to call, write or visit the IRS.

Other payment options

Anyone who cannot qualify for an online payment plan can explore other options, such as:

* Offer in compromise – Some taxpayers qualify to settle their tax liabilities for less than the total amount owed by submitting an Offer in Compromise. Taxpayers should use the Offer in Compromise Pre-Qualifier tool on IRS.gov to see if they qualify.

* Temporary delay of collection – Taxpayers can contact the IRS to request a temporary delay of the collection process. If the IRS determines that the taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves. Penalties and interest continue to accrue until the full amount is paid.

Taxpayers can get details on these options and more by reviewing Tax Topic 202, Tax payment options, on IRS.gov, or by contacting the IRS using the information on their most recent notice.

Beware of scams

The IRS will not call, text or contact anyone via social media to demand immediate tax payment. Instead, the agency usually contacts taxpayers by mail with a bill, letter or notice explaining what they owe and how to question or appeal any amount due. See information on scams on IRS.gov.

Any taxpayer who is unsure whether they have an unpaid IRS bill can view their tax information using their Individual Online Account on IRS.gov.