The IRS has announced several online resources and flexible options for individuals who have not yet filed their federal income tax return for the tax year at issue. Those who owe taxes have been encouraged to file promptly, even if full payment is not possible. Interest and penalties have continued to accrue until the balance has been paid in full. Taxpayers have been able to make secure payments through IRS Direct Pay, IRS Online Account, debit/credit cards, EFTPS or digital wallets, and receive immediate confirmation. The IRS has also made it possible to apply online for payment plans, including installment agreements, without the need to contact the agency directly.
The IRS has offered flexible online payment plans for those unable to pay in full. A short-term plan has provided up to 180 days for balances under $100,000, while long-term agreements have allowed monthly payments over 72 months for balances under $50,000, depending on the total amount owed. with the option of setting up direct debit to reduce the risk of default. Additionally, the failure-to-pay penalty has been reduced by half while an installment agreement remains active. The IRS has further provided guidance for requesting penalty relief. Taxpayers who have maintained a clean compliance record for the past three years have generally qualified for first-time abatement. Resources such as Administrative Penalty Relief and Help for Those with Tax Debt have been available to assist individuals in resolving their obligations.
