What if I Can’t Pay My Crypto Taxes?

Q: Can TokenTax assist with IRS payment plans?

We don’t handle IRS payment plans ourselves, but we can connect you with specialists in tax controversy who handle these issues frequently. They can guide you on forms, timelines, and best strategies for getting the IRS to agree to a workable arrangement.

Q: Are there specific eligibility criteria for the long-term online payment plan?

The total amount owed, counting interest and penalties, must be $50,000 or less. If you meet that limit, you can typically spread out what you owe over a period of up to five years. Know that you also need to keep up with all other future tax obligations during that time.

Q: What if I owe more than $100,000 in taxes?

If you exceed $100,000, you generally cannot use the simpler online short-term plan, and you may be asked to provide additional paperwork to request a payment arrangement.

Q: Can I settle my tax debt for less than the full amount owed?

Possibly. The IRS calls it an “offer in compromise,” which applies when your obligations surpass all your assets. If you suspect that describes you, a tax controversy pro can help determine whether you have a strong case to settle for less than what you owe.

Q: Is there a difference between short- and long-term online payment plans?

Short-term plans require you to pay off your balance within 180 days, while long-term plans can stretch over five years. Either way, penalties and interest keep racking up until you’ve paid everything off. You can apply online for both arrangements.

ByTynisa (Ty) Gaines, EA · Reviewed byAlex MilesUpdated on June 1, 2026 · minute read

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Owing more than you can pay at tax time is stressful, but the IRS offers payment options that may help reduce the pressure.
The amount you owe matters. Smaller tax debts may qualify for simpler payment plans, while larger balances usually require a more detailed strategy.

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At TokenTax, we create original content to educate and empower the many crypto investors we serve. Our informational articles reflect the latest tax guidelines from agencies worldwide and are regularly updated to be accurate, actionable, and current. Certified tax professionals research, write, and review each piece to combine industry expertise with rigorous fact-checking. Whether you're navigating DeFi, NFTs, or complex trades, TokenTax is your trusted partner in the complex, evolving world of crypto taxes.

It’s not unusual to feel a bit nervous if your tax bill is out of reach, especially in the wild world of crypto. Markets can rise, creating impressive gains, but when the dust settles, you might not have enough cash in hand for the tax man.

Scenarios where you may not be able to pay crypto tax

Money problems can come out of nowhere, and it’s certainly unsettling to owe more than you can pay. These situations pop up often for folks dealing in digital assets.

You owe $50,000 or less including penalties and interest

When your balance, counting penalties and interest, is $50,000 or under, you might be a candidate for a longer online payment plan. This setup allows you to make monthly payments over time, often up to 72 months, depending on your situation.

You owe $100,000 or less including penalties and interest

For debts up to $100,000, the short-term online payment plan is an option. With that plan, you typically have 180 days to pay off what you owe. You’ll still see interest and penalties accrue, though some prefer a quicker resolution to the multiple-year route.

You owe more than $100,000 including penalties and interest

If you exceed the six-figure mark, the IRS will ask you to submit Form 9465 (Installment Agreement Request) along with Form 433-F, which details your financial situation. You may choose to work with an attorney who specializes in tax controversies. Professional guidance can be valuable if you’re trying to negotiate terms with the IRS.

On the crypto side, our crypto tax professionals are available to advise you.

You owe between $50,000 and $100,000 but can’t pay within 180 days

You could be under the $100,000 threshold yet need more than six months to settle your bill. In that case, you’ll follow steps similar to those who owe over $100,000. This means requesting an installment agreement and sharing relevant financial details. You may be asked to show proof you truly need a lengthier schedule.

Your tax liability is greater than the sum total of your assets

If paying in full would create a real financial hardship, you may be able to explore an offer in compromise (OIC). The IRS generally looks at your “reasonable collection potential,” which includes what they could collect from your assets plus expected future income, after certain allowed living expenses. The IRS offers an OIC Pre-Qualifier tool that can help you see if it may be worth pursuing before you apply.

Payment options by the IRS may help you out

Seeing a big balance owed to the IRS can be unnerving, but at least there are official payment plans you can use. If you can clear your balance within six months, there’s a short-term plan. If you expect it’ll take more time, consider a longer arrangement, which can stretch up to five years.

Both types come with added fees and continuing interest until you’re done paying. You can usually apply through the IRS website, making the process more straightforward than many people expect.

Calculate your crypto gains with our free crypto profit calculator.

What Happens if You Don’t Report Cryptocurrency on Taxes in 2025

Skipping crypto details on your tax return can lead to serious repercussions, such as fines or even legal trouble. Simply put, it’s not an option.

If you’re curious about what may happen when someone doesn’t report digital transactions, read our piece: What Happens if You Don’t Report Cryptocurrency on Taxes.