Taxpayer Relief Payment Options: Are You Eligible?
Posted 3/25/2022 by the Office of Communications
If you’re having trouble paying the taxes you owe, or if you’re not able to pay by the deadline, we have several options—which collectively we refer to as taxpayer relief—that can help.
Learn more about these payment options at our new Taxpayer Relief – Payment Options page.
If you know you need relief, it’s important to voluntarily contact us and make payment arrangements to pay the tax due. If you don't contact us, we may take action to collect the taxes.
Taxpayer Relief Payment Options
There are four taxpayer relief payment options. You may be eligible for more than one of the available options, so be sure to review each one.
If you have unpaid liabilities (including tax, penalties, and/or interest), you or your authorized representative (power of attorney) may request an installment agreement to make installment payments over time.
If you can show that timely payment of your upcoming tax liability will cause you undue financial hardship, you or your authorized representative (power of attorney) may request an extension of time to pay.
If you can show that your inability to timely file, pay, and/or deposit taxes you owe was due to reasonable cause and not due to willful neglect, you or your authorized representative (power of attorney) can request that TTB waive or abate (i.e., forgive/remove) financial penalties incurred for being late.
If you are unable to pay your full tax liability, or paying in full would create significant financial hardship, or if you have a legitimate doubt that you owe part or all of the tax TTB says you owe, you or your authorized representative (power of attorney) may submit an Offer in Compromise to resolve your tax liability by paying an agreed-upon, reduced amount.