There are things taxpayers can do if they receive a notice from the IRS that says they own more tax than what they’ve paid.
“If you don’t have the money in the bank, it may be cheaper to get a loan or use a credit card to pay in full because that may cost less than the interest, penalties and fees for an IRS installment agreement,” said IRS spokesman Michael Devine.
Devine said anyone who owes taxes but can’t pay the full amount, should contact the IRS to ask about alternative payment options.
Depending on the amount taxpayers may want to consider making monthly payments to the IRS.
“You can apply for an IRS installment agreement using the Web-based Online Payment Agreement application on IRS.gov,” Devine said.  The application allows taxpayers who owe $25,000 or less in combined tax, penalties and interest to self-qualify, apply for, and receive immediate notification of approval.
You can also complete and submit a Form 9465, Installment Agreement Request, or call 1-800-829-1040 to make your request.  If approved, the user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account.  Low income taxpayers can apply for a reduced fee.
Devine said the IRS may allow a skipped payment or a reduced monthly payment amount for taxpayers having difficulty making payments to an existing Installment Agreement because of a job loss or other financial hardship.
For more information about installment agreements and other payment options visit IRS.gov and search for IRS Publication 594, What You Should Know About The IRS Collection Process and Tax Topic 202, Tax Payment Options.