As the tax deadline looms, millions of Americans are making their final IRS payment arrangements to avoid late fees, interest charges, or potential enforcement actions. Whether paying a balance due for 2024 or catching up on a past-due amount, taxpayers are being urged to understand their options and act quickly as the April filing season comes to a close.
The IRS has made it easier than ever to submit payments through various channels, including IRS Direct Pay, debit or credit card, or electronic funds withdrawal during e-filing. For those who can’t pay in full, installment agreements are also available. “We encourage taxpayers to file and pay what they can by the deadline,” an IRS spokesperson said. “Even partial IRS payments can help minimize penalties and interest.”
Taxpayers who owe the IRS but fail to take action could face consequences beyond financial penalties. The IRS can place liens on property, garnish wages, or freeze bank accounts in severe cases. According to the IRS’s 2023 Data Book, over 5 million individual taxpayers entered into payment plans last year, highlighting how common these arrangements have become.
The agency also reminds filers to avoid scams. Fraudulent calls and emails demanding immediate IRS payment continue to be a problem each year. “The IRS will never demand payment over the phone or request payment in the form of gift cards,” said the spokesperson. Official correspondence typically arrives via mail, and all legitimate payments should be made through verified IRS platforms or financial institutions.
For those still working through their taxes, it’s not too late to file for an extension — but remember that an extension to file is not an extension to pay. Payments are still due by the original filing deadline to avoid accruing interest. Taxpayers can use the IRS’s Online Account tool to check balances, view payment history, and make payments directly.
As the tax season ends, experts recommend reviewing finances early and setting up payment arrangements as needed. Proactive steps now can prevent larger financial headaches down the road and help ensure a smoother experience in future tax years.
