<prompt> Human: I made a mistake on my w4. I owe 1500 and cant afford to pay that. What are my options when I file?  <response>: No matter what, file your return on time. Adjust your federal tax withholding as soon as possible. Dont dig the hole deeper in 2018. Pay as much as you can on or before the return due date. If you pay 50 on time, thats 50 not subject to penalties and interest.Assuming you e-file on time, you should expect to receive your first balance due notice in the third week of May.If you cant pay in full when you receive the first balance due notice, you need a payment plan.Most IRS payment plans require you to be filing compliant. This generally means you have filed all required returns within the prior six years.An IRS payment plan protects you from enforced collections actions, such as wage or bank levies or, in most cases, a Notice of Federal Tax LienThe IRS interest rate is currently 4 per year, compounded daily on the unpaid tax and penalties. The interest rate can be increased or decreased on a quarterly basis.The Failure To Pay penalty accrues at 0.5 of the tax per month or part of a month until the tax liability is paid.The IRS short-term payment plan can be up to 120 days, and it is called a Full Payment Agreement. With this plan, there is no requirement for a fixed monthly payment. The Service calculates the balance due out to 120 days from the request date, and you agree to pay in full by that due date. During the 120 days you could make one payment or 20 payments. There is no fee to request this agreement.If you need more than 120 days, the next payment plan is a formal Installment Agreement IA.With an IA, you agree to a monthly payment amount and a fixed due date. The general rule is the amount due on your notices 72 your minimum payment.There is a one-time user fee to establish an IA, and you may qualify for a reduced fee.When an IA is accepted the monthly FTP rate is generally reduced to 0.25 per month or part of a month. With a regular IA, you receive a monthly reminder noticeYou have the option of sending payments by mail, and there are many electronic payment options availableYou can also request a Direct Debit Installment Agreement DDIA by providing your bank routing and checking account number. The user fee for a DDIA is generally reduced if you qualify. There are no monthly reminder notices issued on a DDIA.If you are certain the Installment Agreement Direct Debit or otherwise is your only path, you can submit Form 9465 by mail, or include it with your e-filed return, to make the request. Missed payments, late payments, payments with non-sufficient funds, or a new balance due can result in a default status. There is generally an 89 fee to reinstate any defaulted agreement.Any refunds you claim on future federal tax returns will be offset to the unpaid balance due. If an offset occurs, you will be sent a noticeYou can set up new payment plans at IRS.gov Online Payment Agreement Have a copy of your return and your balance due notice handy when you access the system. Requesting an Installment Agreement of any kind using OPA generally results in the lowest possible user fee.You can call 1-800-829-1040 M - F 7am - 7pm local time and speak with a representative. They will ask some verification questions, research your account, and provide your payment options. Have a copy of your most-recent return handy when you call.You can make an appointment to visit your local Taxpayer Assistance Center TAC for face-to-face help with an IA. All TACs now require appointments.While OPA and a customer service representative can establish the Installment Agreement before your return is processed, I strongly recommend you wait until you receive the first balance due notice before making any payment plan. Source at IRS.gov 