tax payment (loans, credit card, interest, money)

[azspeedbullet]

i owe about 3k to the irs for my taxes. I filed last week, they accepted my return a few days later. I have little to no credit and i got decline for that irs payment plan. My adjusted income is only 18k. Since i got decline the payment plan and cant send them the 3k amount by tomorrow. I can send the IRS about 500-600 dollars a month, will the IRS accept that payment. What will happen, do i have to pay any kind of fees?

[myrc60]

I don't believe you can get declined that quick. Are you sure?

The IRS will accept any amount you send; doesn't have to be in full either but until it's paid in full you will pay interest and penalties.

[azspeedbullet]

they ran a credit report. Since i have no credit, i didn't get approved. Same stupid reason why i get declined for credit cards and loans due to insufficient credit history

[Lacerta]

I wouldn't take that first no for a final answer.

Somewhere on the paperwork you got, there is almost certainly a phone number or email address. Contact them that way, and tell them what you told us.

Yes, there will be penalties and interest, but they will be less if you are proactive about contacting them and then paying it off quickly than if you put it off.

[azspeedbullet]

I can pay off it within the next 4 months, it just hard to pay it as a lump sum right now

[myrc60]

I don't know it doesn't sound like the same process that I've been through OP. I am pretty sure they don't pull a credit report. Who did you file through?

[azspeedbullet]

hr block

[azspeedbullet]

I called the IRS back and i got a different answer. In about 30 days, they are going to mail me a letter and that the payment plan does not start till May and then once i get the letter i can accept or decline whatever plan they offer me.
Should i send them a partial payment now (like 700 dollars), mail it by the tomorrow and then just wait till i get the stuff in the mail about the payment plan. When i accept the payment plan, will the irs start the plan at the original balance due of 3058 or 2358? Also, if i mail a payment by tomorrow will that also decrease any kind of fees and penatiles for paying latter?

[myrc60]

Mailing a payment tomorrow will certainly reduce any fees and penalties and you should send as much as you possibly can. Just make sure you keep a receipt of the payment, your cancelled check will suffice for this. Better yet signup for EFTPS to make your payments online. It takes a few weeks to get your login information from EFTPS once you start the process but makes those payments so much easier to make. When they send you the payment plan it should include any amounts you've paid including the payment you send tomorrow...but keep in mind if your check passes that letter in the mail, it may not be included, but they will catch up eventually.

It sounds like H&R Block was trying to loan you the money to pay instead of requesting payment plan directly from the IRS. Be wary of this in the future.

[SD4020]

As a general rule steer clear of H&R Block. The IRS will offer a payment plan. Also, with that low an income look at ways of avoiding this next year come file time. If needed to a real tax professional. It might be worthwhile to have someone else look at your taxes. The 3K seem hinkey.