If you didn’t file your 2024 federal income tax return by the April 2025 deadline and you owe taxes, there are still steps you can take to get back on track.
File and Pay As Soon As Possible
Even if you can’t pay the full amount right away, it’s important to file your tax return and pay as much as you can. Interest and penalties will continue to grow on the unpaid balance until everything is settled. Filing now helps reduce additional charges and shows that you’re working to resolve your tax obligation.
Payment Plans for Tax Debt
If you’re unable to pay the full amount by the deadline, consider setting up one of the following payment plans:
- Short-Term Payment Plan – Available for balances under $100,000. This allows up to 180 days to pay the full amount.
- Long-Term Payment Plan – For balances under $50,000, this plan lets you spread payments over a longer period (typically up to 10 years). Monthly payments can be made automatically through direct debit, reducing the risk of missed payments.
Keep in mind, penalties and interest will continue to add up while you’re paying off the balance. However, the penalty for late payment is reduced by half when you’re enrolled in a formal installment agreement.
Penalty Relief
If you’ve received a penalty notice from the IRS, review it carefully. In some cases, you may be eligible for penalty relief. For example, if you’ve filed and paid on time for the past three years and haven’t been assessed penalties, you may qualify for a first-time penalty abatement.
For help reviewing your options, setting up a payment plan, or requesting penalty relief, it’s best to work with a professional accounting firm like Morris and Associates. We can help you navigate the process and determine the most effective way to resolve your tax situation.
