Interest will accrue on your liability, but there are options
Individuals
As long as you owe $50,000 or less and have already filed your return, you may apply for an installment plan with the IRS.
If you owe more than $50,000 but less than $100,000, you may apply for a short-term agreement, but note the following:
- You must pay higher installments
- The IRS will require proof of your financial situation
- A mandatory tax lien will apply on your property
- Your Credit report may take a hit
Businesses
As long as you owe $25,000 or less and have already filed your return, you may apply for an installment plan with the IRS. Per the IRS, you will typically be informed within 30 days of submission as to whether your request is approved or denied.
Remember, don't take too long to pay. Penalties and interest will continue to accrue until the full tax bill is paid. However, the late-payment penalty is cut in half for any month an installment agreement is in effect. To apply, please visit the IRS website.