Taxpayers who missed the April 2025 federal filing deadline still have options to get back on track, according to a new update from the Internal Revenue Service.
The IRS is encouraging individuals who owe taxes to file their return and pay what they can as soon as possible, even if they can’t afford the full amount. Waiting increases interest and penalties—so partial payment is better than no payment.
Online payment plans available
The IRS offers two types of online payment plans:
- Short-term payment plan: For balances under $100,000. Taxpayers get up to 180 days to pay in full.
- Long-term payment plan (Installment Agreement): For balances under $50,000. Allows monthly payments for up to 72 months.
Setting up a long-term plan via direct debit can reduce late-payment penalties and simplify the process. Immediate online approval is possible without calling or mailing the IRS.
Penalty relief may apply
Taxpayers with a clean compliance history may qualify for First Time Abate relief, which waives penalties for failing to file or pay. To be eligible:
- You must have filed the same type of return for the previous three years.
- You must not have had penalties or had them waived for acceptable reasons in those years.
Even if full payment hasn’t been made, the IRS may still approve partial relief. Taxpayers should read any penalty notice carefully and follow the instructions to request abatement.
Why it’s important to act fast
Filing late can lead to multiple penalties:
- Failure to file: Typically the most expensive penalty.
- Failure to pay: Interest and penalties accrue monthly.
- Missed payments: Could result in liens or levies.
By taking immediate action, taxpayers can:
- Minimize additional charges
- Avoid disruptions to loan applications or credit
- Keep future tax refunds from being offset
Tools and assistance
The IRS encourages taxpayers to visit irs.gov/payments to:
- Check eligibility
- Set up or revise a payment plan
- Review balance and payment history
Low-income taxpayers may qualify for a waived or reimbursed setup fee if they agree to make payments via direct debit.
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