Can’t pay your taxes in Ohio? Here’s what you can do

Taxes are one bill you can’t avoid paying, and can be one of the most stressful financial items in any taxpayer’s budget. However, ignoring it makes it worse, so whether you owe the IRS or the state of Ohio, there are real options that can offer relief.

Both the IRS and Ohio Department of Taxation offer help for those worrying about the upcoming tax bill.

File anyway

Even if you know you can’t pay in full by the deadline, you still must file on time. Skipping the return can trigger failure-to-file penalties and limit your payment options.

What to know

• File by the April 15 deadline, no matter what
• Pay whatever you can upfront
• Even a partial payment lowers your balance and can reduce interest and penalties
• An extension gives you more time to file, but not more time to pay

Federal options:

The IRS has several structured options depending on how much you owe and how bad your situation is.

Short-term payment plan:

• Payment period is 180 days or less
• Total amount owed must be less than $100,000 in combined tax, penalties and interest
• No setup fee, though interest and the late-payment penalty continue to accrue

Long-term installment agreement:

• Payments are monthly
• Must owe less than $50,000
• Setup fee normally applies, but low-income taxpayers may qualify for waiver or reimbursement

Offer in Compromise (OIC):

• Allows some taxpayers to settle their tax debt for less than the full amount owed
• Not available to everyone
• IRS reviews income, expenses and assets before accepting

Currently Not Collectible (CNC) status:

• For taxpayers experiencing serious financial hardship
• IRS may temporarily pause enforcement actions while you stabilize your finances
• Does not eliminate the debt, and interest may continue to accrue

Penalty abatement:

• Some taxpayers qualify for late-filing or late-payment penalties reduced or eliminated based on reasonable cause
• Where a taxpayer has a history of compliance, the IRS can typically provide relief under the First Time Abatement program

Apply for a federal payment plan at IRS.gov/paymentplan or call 800-829-1040.

Ohio state options:

The Ohio Attorney General's Offer-in-Compromise (OIC) program lets individuals and businesses settle state debts for less than owed, if they show hardship or liability doubt

Application process and plans

• Submit the official OIC form with full financial docs: assets, income, debts, tax returns.
• No minimum offer amount and reviewed case-by-case
• Payments due within 60 days of acceptance
• Signing binds you to terms: full payment settles debt excluding penalties/interest; rejection/withdrawal means payments may not be refunded.

Stipulations

• Only debts certified to the AG's Collections office qualify; all state debts must be disclosed and addressed together.
• Businesses can apply, but Bureau of Workers' Comp and Jobs & Family Services rarely compromise active firms' premiums or contributions.
• Must prove economic hardship, doubt as to liability, or potential refund under agency rules.
• No offers on estimated liabilities or during bankruptcy; must keep paying existing plans until approved

You can apply through the Ohio Attorney General’s office or by mail Form 9465 to PO Box 182131, Columbus, Ohio 43218-2131. You can also call 1-800-282-1782.

This story was originally published April 8, 2026 at 6:00 AM with the headline "Can’t pay your taxes in Ohio? Here’s what you can do."