What if I owe money on my tax return, but I can’t afford to pay it?

If you owe money on your tax return but can’t afford to pay it, it is still important that you file your tax return by April 15th. You can be fined by the IRS if you do not file your tax return on time. If you cannot pay the full amount due, you can request to set up an installment payment plan with the IRS. An installment plan may seem very convenient, but it is also an expensive option. There is a one-time setup fee, and you will also be charged a late payment penalty and interest on the amount due while you are making payments. It is always best to pay as much as you can by April 15th, even if you cannot pay the full amount. You may also want to consider less expensive alternatives, such as a bank loan.

There are several ways to set up an installment agreement with the IRS:

  • You can fill out Form 9465 to request an installment agreement. We can assist you with filling out the form, but it will need to be mailed in by you.
  • You can call 1-800-829-1040, and the IRS will help you in setting up a payment plan. You should call as soon as possible after you have filed your tax return. Tell them that you have already filed your taxes, and make sure you have a copy of your return with you when you call so you know how much you owe. If you are planning to make a partial payment by April 15th, let them know that as well.

If you also need payment options for an amount due on your Colorado state return, call the Colorado Department of Revenue at 303-238-7378 after you have worked with the IRS on your federal payment plan.