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What Are Your IRS Payment Options?

Reviewed by Karis Fedor, CPA October 2026

Short answer

Your main IRS payment options are paying in full or setting up a payment plan. You can pay in full for free with IRS Direct Pay or your IRS Online Account, or pay by debit or credit card, check, cash, money order, or wire transfer. If you need more time, you can apply for a short-term plan or a monthly installment agreement. If paying would cause financial hardship, the IRS may accept less or pause collection.

See details

IRS Payment Options for Paying in Full

Paying in full costs the least because there’s no plan fee, and the IRS asks you to pay online when possible.

MethodCostNotes
IRS Direct PayFreePay from your bank account.
IRS Online AccountFreePay the same day or schedule up to 365 days ahead.
EFTPSFreeEnrollment required. Good for large or scheduled payments.
Electronic funds withdrawalNo IRS feeOnly when you e-file through tax software or a tax pro.
Debit card, credit card or digital walletDebit $2.10–$2.15; credit 1.75%–1.85% ($2.50 minimum)None of the fee goes to the IRS.
Check or money orderNo IRS fee listedPayable to “U.S. Treasury.” Include Form 1040-V.
CashUp to $1.50 at a retailer; free at an IRS office$500 cap at retailers. IRS offices need an appointment.
Same-day wireSet by your bankSame-day processing.

Form 1040-V is a payment voucher, a slip that tells the IRS whose payment it is. Write your name, Social Security number, tax year, and form number on the check, and never mail cash.

IRS Payment Plans When You Need More Time

A payment plan spreads the cost out. A long-term plan is called an installment agreement, meaning you pay the IRS monthly.

Plan typeApply online if you oweFee onlineFee by phone, mail or in personLow-income fee
Short-term (180 days or less)Less than $100,000$0$0$0
Long-term, direct debit$50,000 or less$29$107Waived
Long-term, other payment method$50,000 or less$69$178$43, may be reimbursed

The amount owed includes penalties, interest, and tax. Long-term plans also require that you’ve filed all required returns. “Low income” means your adjusted gross income (AGI), your total income minus certain adjustments, is at or below 250% of the federal poverty level.

You can also request a plan with Form 9465. For a walkthrough, see how an IRS payment plan works.

What If You Can’t Pay Anything?

If monthly payments are out of reach, the IRS has two hardship options.

Offer in Compromise

An Offer in Compromise may let you settle for less than you owe. The IRS looks at what you earn and spend, plus the equity in what you own. You must have filed all returns and can’t be in open bankruptcy. The fee is $205 plus a first payment, unless you qualify as low income.

Currently Not Collectible

If paying would cause hardship, the IRS can mark your account as Currently Not Collectible and suspend most collection. You still owe the debt. Learn more about tax debt relief.

Penalties and Interest on Unpaid Taxes

Penalties and interest keep growing until you pay in full, even on a plan. The failure-to-pay penalty is 0.5% of unpaid tax per month, up to 25%. If you filed on time, it drops to 0.25% per month during an approved plan. Interest is charged separately. See what happens if you file taxes late.

Sources

How does an IRS payment plan work? What is tax debt relief, and is it legitimate? What Is the IRS Hardship Program? What is an IRS offer in compromise? Can you set up an IRS installment agreement? What happens if you file taxes late?