What if I owe money to the IRS. If you can’t pay the tax, file your return or extension by April 15 anyway to beat the 5%-a-month late filing levy. You can apply for an online payment agreement if you owe $50,000 or less in tax, penalties and interest, and you’ve filed all returns. See whether you qualify for an offer in compromise to settle your tax debt for less. Keep in mind that IRS is giving partial relief from the underpayment penalty. Also, don’t forget the agency’s penalty waiver program for first-time offenders. It’s the first-time penalty abatement program, and you will have to ask for the waiver.