What tax deferment is and who can request it

Tax deferment is an arrangement that lets you delay paying taxes you owe to the IRS without when ready facing penalties or collection action. The IRS grants deferment when you show you cannot pay in full right now, but you expect to be able to pay later — usually within a few months to a year. Deferment is not forgiveness; you still owe the full amount plus interest and any applicable penalties, but the IRS agrees to wait.

You can request deferment if you owe federal income tax, self-employment tax, or payroll taxes and cannot pay by the important date. The IRS does not require you to prove hardship the way some other programs do — you straightforward need to show that paying now would create a genuine problem. Deferment is different from an installment agreement (which spreads payments over months or years) and different from an offer in compromise (which settles the debt for less than you owe).

Key Takeaways

  • Contact the IRS directly by phone, mail, or through your online account to request deferment; the IRS does not process deferment requests through third-party websites.
  • You will need your Social Security number, the tax year in question, and an explanation of why you cannot pay by the important date.
  • Deferment typically lasts 120 days, after which you must either pay in full, set up a payment plan, or request another deferment.
  • Interest and penalties continue to accrue while your payment is deferred, so the total amount you owe will be higher when you eventually pay.
  • The IRS usually responds to deferment requests within two to four weeks if you submit them by mail, or when ready if you call.

How to contact the IRS to request deferment

The fastest way to request deferment is to call the IRS directly. The main IRS phone line is 1-800-829-1040. Have your Social Security number, the tax year you owe for, and the amount you owe ready when you call. The IRS representative will ask why you cannot pay and when you expect to be able to. Be honest and specific — for example, "I had a job loss in March and expect to return to work in June" is more useful than "I don't have the money."

If you prefer to write, send a letter to the IRS address for your state (listed on the back of your tax notice). Include your name, Social Security number, the tax year, the amount owed, and a brief explanation of why you need the delay. Mail takes longer — typically two to four weeks — but creates a paper record of your request.

If you have an IRS online account (created at IRS.gov), you can also check whether deferment is an option for your specific debt and sometimes request it directly through the account. Not all tax debts are may be able to access for online deferment, so the phone or mail route may be necessary.

What information you need before you call or write

Gather these details before you contact the IRS. You will need your Social Security number or Individual Taxpayer Identification Number (ITIN), the tax year you owe for (for example, 2023 or 2024), and the amount owed (shown on your tax notice). Have the notice itself in front of you — it shows the important date, the amount, and often a reference number.

You should also have a clear answer to the question "When will you be able to pay?" Deferment is usually granted for 120 days, so if you say you will have the money in two months, that fits within a standard deferment period. If you need longer, you may be steered toward a payment plan instead, which allows you to pay over several months or years without a fixed end date.

What happens after you request deferment

If you call, the IRS representative will tell you on the spot whether deferment is approved. They will give you a confirmation number and explain the terms — usually that you have 120 days to pay. Write down the confirmation number and the date the deferment ends.

If you request deferment by mail, the IRS will send you a letter confirming approval or denial, usually within two to four weeks. If approved, the letter will state the deferment period and any conditions. Keep this letter with your tax records.

During the deferment period, interest and penalties continue to accrue. The IRS charges interest on unpaid taxes (currently around 8 percent annually, though this rate changes quarterly), and you may owe failure-to-pay penalties as well. This means the total amount you owe when the deferment ends will be higher than it is today. The IRS will send you a new notice showing the updated amount before the deferment period ends.

What to do when your deferment period ends

Before your 120-day deferment period expires, you have three options: pay the full amount, request another deferment, or set up a payment plan. If you do nothing, the IRS will resume collection action, which can include wage garnishment, bank levies, or a lien on your property.

If you still cannot pay in full, contact the IRS again before the deferment ends and ask about an installment agreement. An installment agreement lets you pay over time — typically 24 to 72 months depending on the amount — and stops the IRS from taking collection action while you are making regular payments. You can set up an installment agreement by phone, mail, or online.

Deferment versus other payment options

Deferment is a short-term delay, not a long-term solution. If you know you will need more than 120 days to pay, an installment agreement is usually a better choice because it gives you a fixed monthly payment and a clear end date. Installment agreements also stop collection action when ready, whereas deferment only pauses it.

An offer in compromise is a different tool entirely — it allows you to settle your tax debt for less than the full amount if you can show that paying in full is genuinely impossible. Offers in compromise are harder to get approved and take longer to process, but they can reduce what you owe. You cannot request an offer in compromise while a deferment is active; you must wait until the deferment ends or is denied.

If you owe less than $25,000 and want a payment plan, you can set one up online without calling or writing. The IRS charges a setup fee (usually $31 to $225 depending on the method) and a small monthly fee, but the process is quick and you get when ready confirmation.

Common reasons deferment requests are denied

The IRS rarely denies a deferment request outright, but it can happen. Deferment may be denied if you have a history of not paying after deferment periods end, if you owe a very large amount and the IRS believes you are unlikely to pay even after 120 days, or if you have already received multiple deferments for the same debt.

If your request is denied, you will receive a letter explaining why. You can then request a payment plan instead, which the IRS is more likely to grant. You can also request reconsideration by calling the IRS and asking to speak with a supervisor, though this rarely changes the outcome.

Frequently Asked Questions

Does requesting deferment hurt my credit score?

No. The IRS does not report to credit bureaus, so deferment does not appear on your credit report. However, if the IRS places a tax lien on your property (which happens after collection action resumes), that lien will appear on your credit report and will harm your score.

Can I request deferment if I owe state taxes too?

No. Deferment is a federal IRS program only. You must contact your state tax authority separately to request a delay on state taxes. Most states have their own deferment or payment plan programs, but the rules and contact information vary by state.

What if I cannot pay even after the 120-day deferment ends?

Contact the IRS before the deferment expires and request an installment agreement instead. An installment agreement spreads your payments over a longer period and stops collection action while you are paying. You can also request another deferment, though the IRS may deny it if you have already received multiple deferments for the same debt.

Do I have to pay the interest that accrued during deferment?

Yes. Interest continues to accrue during deferment and becomes part of what you owe. When the deferment ends, the IRS will send you a new notice showing the updated total, including all accrued interest and penalties.

Can I request deferment if I am already in a payment plan?

Usually not. If you are already making payments under an installment agreement, you do not need deferment. If you cannot make your scheduled payment, contact the IRS and ask about modifying your agreement instead — they can lower your monthly payment or extend the timeline.