Resources: Guides

State and Federal Payment Relief Options

Explore different options to set up a payment plan or potentially reduce your tax debt with the Internal Revenue Service (IRS) or Franchise Tax Board (FTB).
Updated 02/04/2026
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When it comes to facing tax penalties and payment challenges, it’s important to look into your options with the IRS or the California Franchise Tax Board (FTB) as soon as possible if the amount owed is a hardship. You may have options to set up a payment plan or, in some cases, reduce what you owe. There are a variety of options (not all of them are listed here), so we encourage you to review the IRS and FTB resources linked in the FAQs below.

Please note: Setting up a payment plan is a separate process, and assistance is not provided through MyFreeTaxes.org or through our in-person and virtual Volunteer Income Tax Assistance (VITA) free tax preparation sites. However, our filing an extension video includes a visual showing where to find IRS and FTB payment options online.

The IRS and FTB both charge a penalty for not filing by the tax deadline if you owe taxes. They also begin to charge interest on any unpaid taxes starting the day after the filing deadline. By filing an extension, you will avoid a penalty for not filing on time, but please note that interest will still accumulate for any unpaid taxes owed. To keep interest fees down on unpaid taxes, try to pay as much of the amount due as possible before the tax deadline—even if you can’t pay the full amount.

If you expect a refund, there is no penalty for filing late, and an extension is not required. till, it’s a good idea to file as soon as you can, because there’s a time limit on claiming a refund. In general, you can claim a federal refund up to three years from the date you filed your return (or the date it’s treated as filed) or two years from the date you paid the tax—whichever is later.

The filing deadline, usually around April 15, is the deadline to file taxes and pay the IRS or FTB if you owe taxes. Sometimes that deadline is different if the deadline lands on a weekend or legal holiday, or if there’s a postponement due to a federally declared disaster. For instance, for the 2024 tax year, Los Angeles County residents were granted an automatic postponement until October 15, 2025 due to the wildfires and straight-line winds that began on January 7, 2025.

There are several factors that affect whether you owe taxes or not, including:

  • Incorrect withholding amounts:
    If you underpaid taxes on the income you made, this means you will owe a higher amount of taxes at the end of the year. If you overpaid taxes on the income you made by withholding a higher amount from your income, then you will receive a refund.
  • Eligibility for tax credits and deductions
    If you are eligible for tax deductions or nonrefundable tax credits, these can lower your tax bill down to $0. If you are eligible for refundable tax credits, these are tax credits that can be paid out if they exceed the amount of taxes you owe—meaning you could still receive a refund.

If you are unsure about how to fill out your withholding form (Form W-4), use the IRS Tax Withholding Estimator. Visit our affiliated website, MyMoneyPath.org for more information on understanding refunds and planning ahead. 

For individuals who are unable to pay their tax liability in full, the IRS offers a short-term (180 days or less) and long-term (monthly installments) payment plans; the FTB offers a monthly installment agreement (up to three to five years maximum).

TypePayment Plan OptionsEligibilityHow to Apply
IRS Short-term Payment Plan
  • Amount owed to be paid in 180 days or less
  • $0 set up fee
  • Plus accrued penalties and interest until the balance is paid in full
  • Fees apply when paying by card

 

  • To be eligible, your combined tax, penalties, and interest must be less than $100,000.

 

 

 

 

 

IRS Long-term Payment Plan
  • Amount owed to be pain in more than 180 days (monthly payments)
  • Setup fees vary
  • Fees apply when paying by card.

 

 

 

 

 

 

 

 

 

 

 

 

  • To be eligible, your combined tax, penalties, and interest must be less than $50,000.

 

 

 

 

 

 

 

 

 

 

 

 

Can apply online, by phone, mail, or in person.

  • Option 1: Pay through Direct Debit
    • Apply online: $31 setup fee
    • Apply by phone, mail, or in person: $107 setup fee
    • Set-up fee can be waived if you meet certain income requirements
  • Option 2: Monthly payments through Direct Pay, using the Electronic Federal Tax Payment System (EFTPS) (enrollment required), or payment by check, money order, or debit/credit card
    • Apply online: $130 setup fee
    • Apply by phone, mail, or in person: $225 setup fee
    • $43 setup fee for tax filers who meet certain income requirements (this setup fee can also be reimbursed if certain conditions are met)

Phone: 800-829-1040
Mail: Form and instructions are here.

 

FTB Installment Agreement
  • Up to 3–5 years maximum
  • Up to 90 days to process the request (while waiting for approval, the FTB recommends continuing payments. Penalties and interest accrue until the balance is paid in full).
  • $34 setup fee (if approved)

 

 

 

 

  • If the amount owed is less than $25,000 and can be paid in 60 months or less
  • If you have filed income tax returns the last 5 years

 

 

 

 

 

 

Can apply online, by phone, mail, or in person.

  • You cannot apply online if you have a:
    • Current installment agreement with the FTB
    • Wage garnishment (earnings withholding order)
    • Bank levy (order to withhold)
    • Other collection orders (warrant, continuous order to withhold)

Phone: 800-689-4776
Mail: Form and instructions are here.

 


To apply for a payment plan with the IRS (federal taxes), click here. To apply for a payment with the Franchise Tax Board (California), click here.

Make Payments to the IRS

There are multiple options when it comes to paying taxes if you owe:

  • Online: You may submit a payment when filing an extension or taxes online with your complete bank account and bank routing number. Another fast and secure way to make any payment is on the IRS website at www.irs.gov/payments.
  • Phone: You may also call the IRS general line to make a payment through the automated phone system at 1-800-829-1040.
  • Mail: You may make payments by mail using a personal check or money order. It is important to include relevant notes with your check or money order payment—such as which tax year you would like the payment applied to (for example, “Tax Year 20xx”) and your social security number or ITIN on the check memo. Checks written to the IRS are written to the Department of Treasury.

Here is a sample check with relevant information you should include:

 

The address where you may send IRS payments:

Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501

Make Payments to the Franchise Tax Board

When it comes to paying the Franchise Tax Board, the process is similar. You can pay over the phone, online, or by mailing a check.

  • Online: To pay online, visit: https://www.ftb.ca.gov/pay.
  • Phone: To make any payment or set up a payment plan with the Franchise Tax Board via phone, you can call 1 (800) 852-5711.
  • Mail: To mail your payment to the Franchise Tax Board, send a check written out to the Franchise Tax Board to the following mailing address.

    Franchise Tax Board
    P.O. Box 942867
    Sacramento, CA 94267-0001

If your tax debt is more than what you can handle, the IRS and FTB offer additional relief options. To read more about options offered through the IRS, click here. To read more about options offered through the FTB, click here.

If you need additional support with navigating your federal tax debt relief options, you can also contact the Taxpayer Advocate Service (TAS) or a Low-Income Taxpayer Clinic (LITC). Both the TAS and LITCs are independent of the IRS, and provide additional support to taxpayers.

The Taxpayer Advocate Service (TAS) can provide assistance if your tax issue is causing financial hardship, if you have attempted to resolve the problem with the IRS without success, or if you believe that an IRS system, process, or procedure is not functioning correctly. LITCs can assist you in navigating IRS notices, audits, appeals, tax collection issues, and other tax disputes at no cost or for a small fee.