First, even if you can't pay your tax bill, go ahead and file your return on time. This way you'll avoid the IRS' late-filing penalty of 5 percent per month of your balance due. Paying with plastic Now take a look at what you owe.
Some taxpayers find they can pay part or all of their tax bill by putting it on a credit card.
The IRS has authorized Official Payments Corporation and PhoneCharge Inc. to take charge payments of tax bills. Remember, however, that while this may get you off the hook with Uncle Sam, it will cost you in other ways. Each company charges a service fee of 2.5 percent of your charge amount. And if you don't pay off your credit card in full, you'll start racking up interest charges on your account. Installment plans If your tax bill is too large for a credit card, the IRS is willing to take monthly payments.