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Can't Pay Taxes by October 15, 2026? File Anyway
Short answer: All State Tax Resolution, led by Sabih Shafi, an IRS Enrolled Agent, helps people who owe more than they can pay by the deadline. Not filing and not paying are two different problems with two different penalties, so file your 2025 return on time, which for most extension filers means Thursday, October 15, 2026, even if you cannot pay. Then pay what you can and ask the IRS for a payment plan.
Key takeaways
The IRS says to file on time even if you cannot pay your balance in full.
The late-filing penalty grows much faster than the late-payment penalty, so the return is the one thing not to skip.
Interest runs on unpaid tax from the original due date, even if you had an extension.
You must be current on all required returns before the IRS will consider a payment plan.
You can apply online for a short-term plan if you owe less than $100,000, or a monthly plan if you owe $50,000 or less and have filed every required return.
Facts on this page were checked against IRS.gov on October 6, 2026.
Not filing and not paying are two different problems
The IRS charges a failure-to-file penalty if you do not file by the due date, including extensions. It charges a separate failure-to-pay penalty if you do not pay the tax when it is due. Both build for each month or part of a month, but the late-filing penalty grows much faster. When both apply in the same month, the IRS reduces the late-filing penalty by the late-payment amount. Filing on time keeps the faster-growing penalty from starting.
Interest is a third charge. It runs on unpaid tax from the original due date, April 15, 2026, even if you filed an extension, and it compounds daily. The IRS applies each payment to tax first, then to penalties, and then to interest.
What your extension did, and one rule that can help
An extension gives you more time to file, not more time to pay. There is one safe harbor. The IRS says the late-payment penalty does not apply during the 6-month extension period if you paid at least 90% of your actual 2025 tax by April 15, 2026 and pay the balance when you file. If you paid less than that, the IRS usually charges the late-payment penalty from April 15, 2026.
Pay what you can before October 15
The IRS says paying what you can when you file minimizes interest and penalties. Your options:
IRS Direct Pay takes money from a checking or savings account for free, with no sign-in.
Your IRS online account lets you pay, see your balance and set up a payment plan.
A debit card, credit card or digital wallet works too. A fee applies, and it goes to the payment processor, not the IRS.
Check, money order or cash are also accepted.
IRS payment plans: who can apply online
You must be current on all filing and payment requirements before the IRS will consider a payment plan.
Short-term plan: up to 180 days to pay in full, with no setup fee. Interest and penalties still build until you pay. You can apply online if you owe less than $100,000 in combined tax, penalties and interest.
Monthly plan (installment agreement): you can apply online if you owe $50,000 or less in combined tax, penalties and interest and have filed all required returns. You can even apply before the IRS sends a bill by entering the balance from your return. A setup fee applies. It is lower with direct debit and may be waived or reduced for low-income taxpayers.
To apply online you need an IRS online account and a photo ID, and you get an answer right away. If you cannot apply online, you can mail Form 9465.
The IRS generally does not take enforced collection action while it considers a plan or while one is in effect. If you filed your return on time, the late-payment penalty rate also drops while an approved plan is in effect. That is one more reason to file by October 15.
If you cannot pay anything right now
If paying would keep you from covering basic living expenses, you can ask the IRS to delay collection. It may report the account as currently not collectible until your finances improve. The debt does not go away, interest and penalties keep building, and the IRS can still file a federal tax lien.
An Offer in Compromise can settle a debt for less. The IRS requires that you have filed all returns, received a bill for at least one debt in the offer, and made your required estimated tax payments for the current year. Our guide on payment plans and currently not collectible status compares them.
Penalty relief basics
The IRS may remove or reduce some penalties if you acted in good faith and can show reasonable cause. The main routes:
Reasonable cause. You must show you used ordinary care and still could not file or pay on time. The IRS lists fires and natural disasters, inability to get records, and serious illness or death in the family as examples. It decides case by case.
Lack of funds alone is not enough. The IRS says that by itself it is not reasonable cause for failing to pay, though other facts can support relief.
A clean record. For 2025 returns, the IRS says Automatic Exemption from Penalty applies. If you file or pay late but filed on time and paid the tax due for the three prior years, no penalty is assessed, and you do not need to apply. First Time Abate, which you must request, still covers earlier years.
Interest. The IRS does not remove interest for reasonable cause or first-time relief. When it removes a penalty, it also reduces the interest on that penalty.
To ask, call the number on your penalty notice or send Form 843. The IRS also says a good-faith payment as soon as you can may help show your failure to pay on time was due to reasonable cause and not willful neglect.
What happens if you do not pay at all
The IRS sends a first bill, then at least one more. If you still do not pay after the final bill, collection can begin, from applying later refunds to seizing property. The IRS usually seizes property only after a Final Notice of Intent to Levy and Notice of Your Right to a Hearing, sent at least 30 days before the seizure, with some exceptions. It cannot issue a new levy if you have a current or pending payment plan or Offer in Compromise, or if it agrees you cannot pay because of economic hardship. Not paying may also lead to a Notice of Federal Tax Lien.
How we help
I am Sabih Shafi, an IRS Enrolled Agent, federally licensed to represent taxpayers before the IRS in all 50 states. We work by phone and video, in English or Spanish, with clients nationwide and abroad.
Filing first: we prepare and file your return.
Payment plans: we compare a short-term plan, a monthly plan and hardship status for your numbers, then set it up.
Penalty relief: we request relief when your history or facts support it.
A flat fee quoted in writing before work starts.
Call or text (323) 900-0305, or book your free 20-minute tax review.
Frequently Asked Questions
Should I file my return if I cannot pay?
Yes. The IRS says to file on time even if you cannot pay in full. Filing by the deadline keeps the late-filing penalty from starting, and the IRS will not consider a payment plan until you are current on filing.
Can I get a payment plan before I file?
No. You must be current on all filing requirements first. Once you file, you can apply online if you qualify, even before the IRS sends a bill.
Does a payment plan stop penalties and interest?
No. Interest and penalties continue until the balance is paid in full. If you filed on time, the late-payment penalty rate is lower while an approved plan is in effect.
Will the IRS take my paycheck or bank account right away?
Not right away. The IRS sends bills first, and it usually seizes property only after a Final Notice of Intent to Levy sent at least 30 days before the seizure, with some exceptions. It cannot issue a new levy while a payment plan is current or pending.
Can I pay my taxes with a credit card?
Yes. Card and digital wallet payments carry a fee that goes to the payment processor, not the IRS. Direct Pay from a bank account is free.
Will the IRS waive penalties if I cannot afford to pay?
The IRS says lack of funds by itself is not reasonable cause. Relief can still apply when other facts show you used ordinary care, or when you have a clean record for the three prior years. The IRS decides case by case.
General information, not tax advice for your situation.
Related Reading
Talk to an Enrolled Agent
This article is general information, not individual tax advice. If you want to talk through your own IRS or state balance, book a free 20-minute review or call or text us directly.
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