Can’t Pay Your Tax Bill? File by Oct. 15 Anyway

Taxpayers who requested an extension to file their 2025 tax returns are approaching the Oct. 15, 2026, deadline. Some are still waiting for tax documents. Others have discovered that they owe more than expected and cannot pay the full balance.

Neither problem should cause taxpayers to miss the filing deadline, said Jeff Levine, chief planning officer for Focus Partners. A taxpayer who cannot pay should still file, while someone missing a document may be able to retrieve the reported information through the IRS website.

The first step is to stop treating filing and paying as a single decision. File the return, Levine said, then communicate with the IRS about paying the liability.

What This Means for You

• File your return by Oct. 15, even if you cannot pay the full balance.
• Contact the company or institution responsible for a missing tax form.
• If the form does not arrive, request an IRS wage and income transcript.
• Ask the IRS about an online payment plan if you cannot pay what you owe.
• Do not assume that ignoring the return will make the tax liability disappear.

Why Filing Comes First

Some taxpayers reach the extended deadline only to learn that their tax bill is larger than expected. Without enough money to pay, they may be tempted to postpone the entire process.

That is the wrong response, Levine said.

“The very first thing there is still file your tax return,” he said.

There are penalties for failing to pay taxes on time, Levine said, but the penalties for failing to file can be substantially worse. A taxpayer who delays filing still owes the underlying tax and may face additional penalties.

“It is better to file your return, tell the IRS you owe them money and not pay than it is to sort of pull the sheets over your head,” Levine said.

In plain English: Being unable to pay does not make filing pointless. The return tells the IRS what the taxpayer owes and creates an opportunity to address the unpaid balance.

Ignoring the deadline does neither.

How a Payment Plan Can Help

Taxpayers who cannot pay the full balance may be able to establish an IRS payment plan. Some streamlined arrangements can be set up online, Levine said, making the process easier than it was in the past.

The central requirement is communication.

Taxpayers should acknowledge the liability and work with the IRS on a way to pay it, Levine said. Once an arrangement is in place, it may help a taxpayer avoid a lien on property, wage garnishment or a continuing stream of IRS notices.

That does not mean the IRS is necessarily “generous.”

“Generous might be in the eye of the beholder,” Levine said.

But a payment plan offers a path forward. Avoiding the return does not stop the tax from being due. It can make the consequences worse.

The interview did not address payment-plan eligibility, costs, interest or repayment periods. Taxpayers need those details before agreeing to a plan.

What to Do About Missing Forms

Not every late filer is procrastinating. Some taxpayers cannot complete an accurate return because an expected form has not arrived.

The first step is to contact the business or financial institution responsible for issuing it, Levine said. The organization may be able to email or mail another copy. In some cases, it may provide the necessary information over the phone.

If that fails, the taxpayer may have another option: an IRS wage and income transcript.

After verifying their identity through the ID.me process on the IRS website, taxpayers can request the transcript and download it as a PDF, Levine said.

The transcript contains information the IRS received from other organizations. That may include Forms 1099, W-2, 1098 and 5498, along with Schedule K-1 information.

The wage and income transcript does not provide a visual copy of the original form. Instead, it displays the reported information line by line, along with the corresponding amounts.

In practical terms, it may give a taxpayer the numbers needed to complete the return when the original document is unavailable.

The interview did not address what to do if the missing information does not appear on the transcript. That is an important question for taxpayers who remain unable to document an item as the deadline approaches.

Why Schedule K-1 Causes Delays

Schedule K-1 can be a particular source of frustration for taxpayers with interests in certain businesses.

Some businesses may wait until around Sept. 15 to file their own tax returns, Levine said. They may be unable to provide Schedule K-1 information to an owner or investor until that business return is complete.

By the time the taxpayer receives the form, the calendar may have reached mid- or late September. That leaves only a few weeks to complete an accurate individual return by Oct. 15.

“We have a complicated system, Bob,” Levine said. “Sometimes it just takes a while to tally up all the numbers and get the information out to people so they can properly report their taxes and pay what they owe.”

The delay illustrates why an extension does not necessarily indicate poor planning. A taxpayer cannot report information that has not yet been provided.

How Filing Patterns Change

Taxpayers expecting refunds tend to file earlier because they want their money back, Levine said. Those who owe money are more heavily represented among later filers.

Tax preparers may also use extensions to spread their work across a longer period. But for some taxpayers, waiting is not a choice. They may have requested an extension because the documents necessary to prepare an accurate return were unavailable.

That distinction matters. The extended deadline serves taxpayers dealing with complicated returns and late-arriving information, not just those who put off filing.

But once Oct. 15 arrives, the reason for the delay does not resolve the problem. Taxpayers still need to file, locate missing information and address any balance due.

What Taxpayers Should Do Now

A taxpayer missing a document should begin by contacting the issuer. If a replacement cannot be obtained, the taxpayer can check the IRS wage and income transcript for information already reported to the agency.

A taxpayer who cannot pay should not use the unpaid balance as a reason to withhold the return. File first, Levine said, and then discuss a payment arrangement with the IRS.

The practical message is simple: Do not hide from the deadline.

Key Takeaways

• Treat filing the return and paying the balance as separate problems.
• File by Oct. 15, even if full payment is not possible.
• Request a wage and income transcript if an expected form is missing.
• Communicate with the IRS instead of ignoring notices or the unpaid liability.
• Review payment-plan terms before entering an arrangement.

Traveler / Planner Checklist

Although this interview concerns tax filing rather than travel, the same planning format provides a useful deadline checklist:

• Confirm that the 2025 tax return is ready for filing.
• Identify every missing form.
• Contact each form issuer immediately.
• Request an IRS wage and income transcript if necessary.
• Determine whether the full balance can be paid.
• If it cannot, investigate an IRS payment plan.
• File by Oct. 15 rather than postponing the return because payment is unavailable.

Top Five Tips

1. File the return even if you cannot pay in full.
2. Contact the original issuer about a missing form.
3. Request the correct IRS transcript: the wage and income transcript.
4. Communicate with the IRS about payment options.
5. Do not confuse a missing document with permission to ignore the deadline.

Common Mistakes to Avoid

• Failing to file because the tax cannot be paid.
• Assuming the IRS does not have information from a missing form.
• Requesting a tax return transcript when the needed document is on a wage and income transcript.
• Waiting until the final days before contacting a form issuer.
• Treating an IRS payment plan as automatically affordable without reviewing its terms.

Best Time / Ideal Conditions

The best time to act is before Oct. 15.

Taxpayers are in the strongest position when they have identified missing documents, checked the IRS transcript, calculated the amount due and explored payment options before filing day. The transcript does not specify how long document retrieval or payment-plan approval may take.

Estimated Budget / Resource Allocation

The interview provides no dollar estimate for entering an IRS payment plan and does not specify interest, penalties, setup costs or monthly-payment requirements.

Before committing to a plan, taxpayers should determine:

• The total amount owed.
• Whether the IRS offers an online arrangement appropriate to their situation.
• What repayment terms apply.
• Whether professional tax assistance is needed.

The immediate resource priority is completing and filing the return by Oct. 15. The second is establishing a workable way to address the unpaid liability.

Got questions about money? Email [email protected].

Editor’s note. The above is an AI-generated article based on an interview with Jeff Levine, chief planning officer with Focus Partners.