I owe the IRS and cannot pay. What can I do?
If you cannot pay the full balance, you still have options. The IRS offers short-term and monthly payment plans, and in some cases other relief such as an offer in compromise. Read your notice, pay what you can, and look at the payment options on IRS.gov. Ignoring the bill usually leads to more letters.
Start with your notice
Find the code in the corner of the letter, the amount and the date printed on it. The date is the one to check. Look up the code on OweRight to see what that kind of letter usually means, then read the IRS page it links to.
Ways the IRS lets people pay over time
The IRS describes short-term payment plans and longer monthly installment agreements at IRS.gov/paymentplan. Many people can apply online. Form 9465 is the paper request. For some balances the IRS may ask for a financial statement such as Form 433-F.
An offer in compromise on Form 656 is a request to settle for less than the full amount. The IRS looks closely at income, expenses and assets, and has a tool on its site to check before applying.
If the letter mentions a levy or a hearing
Letters such as CP504, LT11 and CP90 are later steps in collection. Read them right away. LT11 and CP90 explain how to request a Collection Due Process hearing with Form 12153, using the dates printed on the notice.
Related notices
- IRS Notice CP14: Balance due
- IRS Notice CP501: Reminder of balance due
- IRS Notice CP503: Second reminder of balance due
- IRS Notice CP504: Notice of intent to levy
- IRS Letter LT11: Final notice of intent to levy
- IRS Notice CP90: Intent to levy and right to a hearing
- IRS Notice CP523: Intent to terminate installment agreement
Related forms
- Form 9465: Installment Agreement Request
- Form 433-F: Collection Information Statement
- Form 433-A: Collection Information Statement for Wage Earners and Self-Employed Individuals
- Form 656: Offer in Compromise
Guides
Read the IRS page
IRS.gov: Payment plans (opens in a new tab). The IRS page and your own letter are the final word.
Frequently asked questions
Can I set up a payment plan with the IRS?
The IRS offers payment plans for many people who cannot pay in full. Read the options and apply at IRS.gov/paymentplan, or use Form 9465. The IRS page is the final word on terms.
What happens if I ignore an IRS bill?
The IRS usually sends more letters, and interest and penalties can keep adding up. Later letters can describe a levy. Read each letter and check the date printed on it.
Does OweRight set up payment plans?
No. OweRight does not contact the IRS for you. The app explains your letter and the options the IRS describes, and you decide what to do.
If you have an IRS letter
The OweRight iPhone app reads your letter and explains what it says in plain English. Join early access and we will let you know when it is available.
OweRight is not the IRS and does not give tax or legal advice.