If you find you owe tax after completing your federal tax return but can’t pay it all when you file, the IRS wants you to know your options.

Here are four tips that can help you lower the amount of interest and penalties when you don’t pay the full amount on time.

1. File on time and pay as much as you can. Filing on time ensures that you will avoid the late filing penalty. Paying as much as you can reduces the late payment penalty and interest charges. For electronic payment options, see IRS.gov. If you pay by check, make it payable to the United States Treasury and include it with your return.

2. Consider getting a loan or paying by credit card. The interest and fees charged by a bank or credit card company may be lower than IRS interest and penalties. For credit card options, see IRS.gov.

3. Request a payment agreement.  You do not need to wait for IRS to send you a bill before requesting a payment plan. You can:

• • Use the Online Payment Agreement tool at IRS.gov, or
  • Complete and submit Form 9465, Installment Agreement

Request, with your tax return. Find out about payment agreement user fees at IRS.gov or on Form 9465.

4. Don’t ignore a tax bill.  If you get a bill from the IRS, contact them right away to talk about payment options. The IRS may take collection action if you ignore the bill, which will only make things worse.

In short, it is always best to file on time, pay as much as you can by the tax deadline and pay the balance as soon as you can. For more information on the IRS collection process go to IRS.gov or seeIRSVideos.gov/OweTaxes.

Additional IRS Resources:

• Make a Payment – payment options
• Online Payment Agreement tool
• Form 9465, Installment Agreement Request

IRS YouTube Video:

• Owe Taxes But Can’t Pay? – English | Spanish | ASL
• Online Payment Agreement – English

The April 15 tax-filing deadline is fast approaching. Some taxpayers may find that they need more time to file their tax returns. If you need extra time, you can get an automatic six-month extension from the IRS.

Here are five important things you need to know about filing an extension:

1. Extra time to file is not extra time to pay.  You may request an extension of time to file your federal tax return to get an extra six months to file, until Oct. 15. Although an extension will give you an extra six months to get your tax return to the IRS, it does not extend the time you have to pay any tax you owe. You will owe interest on any amount not paid by the April 15 deadline. You may also owe a penalty for failing to pay on time.

2. File on time even if you can’t pay.  If you complete your return but you can’t pay the full amount due, do not request an extension. File your return on time and pay as much as you can. You should pay the balance as soon as possible to minimize penalty and interest charges. If you need more time to pay, you can apply for a payment plan using the Online Payment Agreement tool on IRS.gov. You can also send Form 9465, Installment Agreement Request, with your return. If you are unable to make payments because of a financial hardship, the IRS will work with you. Call the IRS at 800-829-1040 to discuss your options.

3. Use Free File to request an extension.  Everyone can use IRS Free File to e-file their extension request. Free File is available exclusively through the IRS.gov website. You must e-file the request by midnight on April 15. If you e-file your extension request, the IRS will acknowledge receipt of your request.

4. Use Form 4868 if you file a paper form.  You can request an extension of time to file by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. You must submit this form to the IRS by April 15.Form 4868 is available on IRS.gov.

5. Electronic funds withdrawal.  If you e-file an extension request, you can also pay any balance due by authorizing an electronic funds withdrawal from a checking or savings account. To do this you will need your bank routing and account numbers.

For information about filing an extension and the various methods of paying your taxes, visit the IRS website at IRS.gov.

Additional IRS Resources:

• IRS Free File
• Online Payment Agreement tool
• Form 9465, Installment Agreement Request
• Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return