Rules for Paying Off Back Taxes
Tips for how to pay back what you owe to Uncle Sam over time.
I made a mistake on my tax return and now I've got a bill for back taxes. Will the IRS let me pay it over time?
9 Financial Fumbles You Can Fix
- Rules for Paying Off Back Taxes
- Resolve a Complaint About an eBay Purchase
- Undo Your Social Security Claiming Decision
- Resolve a Dispute With a Home Contractor
- Amend Your Tax Return to Correct a Filing Mistake
- Repair Your Credit Score
- What to Do If You're Delinquent on Student Loans
- Change an Airline Ticket
- Get Out of a Time-Share Deal
Generally, yes. If you can cover the bill within a few months, call the IRS at 800-829-1040 to request a 120-day extension. Interest and penalties will continue to accrue during the extension period.
Otherwise, pay off as much as you can now and apply for an installment agreement to split the rest of the balance into monthly payments. If you owe $50,000 or less in taxes, penalties and interest, apply at www.irs.gov for a plan to pay off the bill over a period of up to six years; your application will likely be accepted, says Jackie Perlman, principal tax research analyst for the Tax Institute at H&R Block.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You're guaranteed an installment agreement for a balance of $10,000 or less as long as you've filed your returns and paid taxes on time for the past five years and you agree to pay off the current bill within three years. You'll pay a one-time fee plus a late-payment penalty and interest for each month the agreement is in effect.
For amounts higher than $50,000, you must submit IRS Form 9465 to apply and Form 433-F to detail your assets, liabilities and income.
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
Use An iPhone? You May Be Hearing From A Class-Action Lawsuit Group
A handful of suits against the iPhone maker seek to crack down on everything from app store purchases to messaging.
By Keerthi Vedantam Published
-
Capital One/Discover: What's In Their Wallet For You?
Push back on Capital One's planned merger with Discover is growing with one group of consumer advocates calling for a public hearing.
By Keerthi Vedantam Published
-
How Much Richer Could You Be Without a Big Tax Refund?
Tax Refunds A big tax refund isn’t a reason to celebrate if you overpaid throughout the year. Here’s how much money your interest-free loan to the government could have cost you.
By Katelyn Washington Last updated
-
How to Calculate Your Adjusted Gross Income — and What It Means
Income Tax Your eligibility for certain money-saving tax breaks depends on your adjusted gross income.
By Ella Vincent Published
-
Ways to File Your Taxes for Free
Free Filing Tax season is in full swing, and if you’re looking to save money, there are several ways to file your taxes for free.
By Kelley R. Taylor Last updated
-
IRS Issues Another Tax Warning for Wealthy, High Earners
Tax Enforcement Wealthy non-filers could pay more tax than they owe if the IRS files for them.
By Katelyn Washington Last updated
-
Types of Income the IRS Doesn't Tax
Income Tax It may feel like the IRS taxes most of your hard-earned money, but some types of income are nontaxable.
By Kelley R. Taylor Last updated
-
Why You’ll Still Pay Oklahoma Grocery Tax
State Tax Oklahoma is eliminating state grocery taxes, but that doesn’t mean groceries will be tax-free.
By Katelyn Washington Last updated
-
Last-Minute Tax Savings Guide for 2023
Tax Savings April 15 is weeks away, so it's not too late to save your 2023 taxes.
By Sandra Block Published
-
Why You Should Care About Your 2026 Taxes Now
Tax Planning It's not to early to prepare for the possibility that your taxes will go up in 2026.
By Sandra Block Published