Tax Time Guide: Use IRS electronic payment options for fast, safe service; avoid penalties and interest

Issue Number: IR-2025-32

Inside This Issue

Tax Time Guide: Use IRS electronic payment

options for fast, safe service; avoid penalties and

interest

WASHINGTON ― The Internal Revenue Service today encouraged

taxpayers to file a tax return or pay taxes they owe using electronic options

on IRS.gov by April 15. These digital tools can help taxpayers avoid owing

late filing and interest fees.

This announcement is part of the Tax Time Guide, a resource to help

taxpayers file an accurate tax return.

File for a filing extension with IRS Free File

All taxpayers – regardless of income – can use IRS Free File to electronically

file a six-month extension of time to file before April 15, 2025. There is no

income limit for filing Form 4868, Application for Automatic Extension of Time

to File U.S. Individual Income Tax Return, through IRS Free File.

An extension gives taxpayers until Oct. 15, 2025, to file and helps them avoid

penalties and interest for failing to file on time. An extension of time to file is

not an extension of time to pay. Taxpayers must pay what they owe by the

April 15 deadline, regardless of any extension to file a return not related to

disaster relief. Interest and a late payment penalty will apply to any payments

made after April 15. Making a timely payment, even a partial payment, will

help limit those penalty and interest charges.

There are multiple options for electronic payments and for entering into a

payment plan or an agreement with the IRS.

IRS Online Account

An IRS Online Account gives taxpayers access to important information that

they may need when preparing to file a tax return, pay a balance or follow up

on notices. That information includes their:

Adjusted Gross Income.

Payment history and any scheduled or pending payments.

Payment plan details.

Digital copies of select notices from the IRS.

Taxpayers can also use their Online Account to securely make a same-day

payment for an outstanding 2024 tax balance, pay quarterly estimated taxes

for the 2025 tax season or request an extension to file a 2024 return.

Other electronic payment options

Direct Pay, available at IRS.gov, is the fastest, easiest way to make a onetime

payment without signing into an IRS Online Account.

Direct Pay is free and allows taxpayers to securely pay their

taxes directly from their checking or savings account without

any fees or registration. Taxpayers can schedule payments up

to 365 days in advance. After submitting a payment through

Direct Pay, taxpayers will receive immediate confirmation.

IRS2Go mobile app is the official mobile app of the IRS.

Taxpayers can check their refund status, make a payment, find

free tax preparation assistance, sign up for helpful tax tips and

more. IRS2Go is available in both English and Spanish.

Electronic Funds Withdrawal (EFW) is a free option that allows

taxpayers to file and pay electronically from their bank account

when using tax preparation software or a tax professional. This

option is free and available only when electronically filing a tax

return.

Electronic Federal Tax Payment System is a free service that

gives taxpayers a safe, convenient way to pay individual and

business taxes by phone or online. To enroll and for more

information, taxpayers can call 800-555-4477 or visit gov.

Debit or credit card and digital wallet lets individuals pay

online, by phone or with a mobile device through any IRS

authorized payment processor. Processors charge a fee for

their services. The IRS doesn’t receive any fees for these

payments. Authorized card processors and phone numbers

are available at Make a Payment.

Help for taxpayers who cannot pay in full

The IRS encourages taxpayers who cannot pay in full to pay what they can

and consider the variety of payment options available for the remaining

balance, including getting a loan to pay the amount due. In many cases, loan

costs may be lower than the combination of interest and penalties that the

IRS must charge under federal law.

Taxpayers should act as quickly as possible and are urged not to wait to

respond to a notice. Tax bills accumulate more interest and fees the longer

they remain unpaid. For all payment options, visit Make a Payment.

Online self-service payment plans

Most individual taxpayers qualify for a payment plan and can use the IRS

Online Payment Agreement to set up a payment plan to pay off an

outstanding balance over time.

Once the online application is complete, the taxpayer receives immediate

notification of whether their payment plan has been approved. Taxpayers can

set up a plan using the Online Payment Agreement in a matter of minutes.

There’s no paperwork and no need to call, write or visit the IRS. Setup fees

may apply for some types of plans.

Online payment plan options for individual taxpayers include:

Short-term payment plan – The total balance owed is less than

$100,000 in combined tax, penalties and interest. Additional

time of up to 180 days to pay the balance in full.

Simple payment plan – Criteria expanded for 2025 to make it

easier and more accessible when the total balance owed is

less than $50,000 in combined tax, penalties and interest.

Taxpayer may pay in monthly payments for up to the collection

statute (usually 10 years), in most cases. Payments may be

set up using direct debit (automatic bank withdraw) which

eliminates the need to send in a payment each month, saving

postage costs and reducing the chance of default. Taxpayers

should remember that extending the time to pay will increase

the applicable penalties and fees.

Qualified taxpayers with existing payment plans may also be able to use the

Online Payment Agreement to make changes including revising their

payment dates, payment amounts or bank information for payments made by

direct debit. Go to Online Payment Agreement for more information.

Though interest and late-payment penalties continue to accrue on any unpaid

taxes after April 15, the failure to pay tax penalty rate is cut in half while an

installment agreement is in effect. Find more information about the costs of

payment plans on IRS.gov at Additional Information on Payment Plans

webpage.

Other payment options

Taxpayers struggling to meet their tax obligation may also consider these

additional payment options:

Offer in compromise – Certain taxpayers qualify to settle their

tax liabilities for less than the total amount they owe by

submitting an offer in compromise. To help determine their

eligibility, they can use the Offer in Compromise Pre-Qualifier

tool.

Temporary delay of collection – Taxpayers can contact the IRS

to request a temporary delay of the collection process. If the

IRS determines a 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.

Other payment plan options – Taxpayers who do not qualify for

online self-service should contact the IRS using the phone

number or address on their most recent notice for other

payment plan options. For individuals and out-of-business sole

proprietors who are already working with IRS Campus

Collection and who owe $250,000 or less, one available option

is to propose a monthly payment that will pay the balance over

the length of the collection statute (usually 10 years). These

payment plans don’t require a financial statement, but they do

require a determination for the filing of a Notice of Federal Tax

Lien.

For more information about payments, see Topic No. 202, Tax Payment

Options, on IRS.gov.

Non-digital payment options

Cash: For taxpayers who prefer to pay in cash, the IRS offers

a way to pay taxes at one of its many retail partners. The IRS

urges taxpayers choosing this option to start early because it

involves a four-step process. Details, including answers to

frequently asked questions, are at Pay with Cash at a Retail

Partner.

Check or money order: Payments made by check or money

order should be made payable to the “United States Treasury.”

To make sure the payment gets credited promptly, taxpayers

should also enclose a 2024 Form 1040-V, Payment Voucher

for Individuals, and print the following on the front of the check

or money order:

“2024 Form 1040.”

Name.

Address.

Daytime phone number.

Social Security number.

Taxpayer rights

The IRS reminds taxpayers that they have rights and protections throughout

the collection process. For details, see Taxpayer Bill of Rights and Publication

1, Your Rights as a Taxpayer.

Taxpayers should know before they owe. The IRS encourages all taxpayers

to check their withholdings with the IRS Tax Withholding Estimator.

This information is part of the Tax Time Guide series, a resource to help

taxpayers file an accurate tax return. Additional information and help are

available in Publication 17, Your Federal Income Tax.