If you can't pay your taxes by the Oct. 15 tax extension deadline, here's what to do.

• Taxpayers in federally declared disaster areas have until a later date to file their tax extensions, which is Oct.15.
• No payment extensions are available for disasters that occurred after April 15, and penalties and interest have been accumulating.
• If you are unable to pay your taxes, tax experts suggest several alternatives.

If you can't pay your tax balance, tax experts suggest considering payment options before the deadline.

Nearly 19 million U.S. taxpayers filed for an extension by the April 15 tax deadline, which pushed the filing date back to October 15. However, taxpayers affected by natural disasters may have additional time, with new deadlines ranging from November 1 to as late as May 1, 2025, depending on the location.

After April 15, federally declared disasters did not receive additional time to pay their tax bills. Interest and penalties on unpaid balances began to accumulate after the deadline.

Some hurricane victims can receive a tax break for their losses. Medicare open enrollment allows retirees to switch to new health-care coverage. Taxpayers in 25 states have additional time to file their taxes, but not to pay them.

Experts caution that many taxpayers mistakenly believe that a tax extension grants additional time to settle their debts.

A lot of people were surprised when Josh Youngblood, an enrolled agent and owner of The Youngblood Group, a Dallas-based tax firm, made the statement.

If you missed the tax deadline, you will be charged a late payment penalty of 0.5% of your unpaid balance per month or partial month, capped at 25%, in addition to interest on unpaid taxes.

The penalty for not submitting tax returns is 5% of unpaid taxes per month or a maximum of 25%.

You have 'various payment options'

If you can't pay your taxes, the IRS offers options, but you must remain current with your filing requirements, according to Tom O'Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.

The IRS offers various payment options online, and many filers receive an immediate acceptance or rejection of payment plan requests without calling the agency after filing.

Establishing a payment plan with the IRS is almost automatic if you owe less than $50,000, according to O'Saben.

IRS online payment plans, or "installment agreements," include:

• An 180-day payment plan may be available if your debt is less than $100,000, including taxes, penalties, and interest.
• If your balance is less than $50,000, including tax, penalties and interest, you may be eligible for a long-term payment plan. This plan requires monthly payments and allows you up to 72 months to pay off the balance in full.

An IRS payment plan could reduce your late-payment fee by half while the penalty and interest continue to accumulate, as per the IRS.

O'Saben stated that one disadvantage of IRS payment plans is that future tax refunds could be applied towards your outstanding balance.

'Don't ignore it because it won't go away'

Experts advise that if you have unpaid taxes, you can anticipate notices from the IRS, and it is crucial to communicate with the agency.

"Youngblood advised against ignoring IRS letters because they won't disappear."

"The IRS is not as bad as people think; they actually want to collaborate with individuals."