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Old 11-26-2010, 12:18 PM
 
Location: Sound Beach
2,160 posts, read 6,974,436 times
Reputation: 884

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I am not sure if this is the correct forum...so mods do your thing if not...

In Sept I got a letter from the IRS that I owe about $1100 from my 2007 taxes. Apparently I did not claim my Utah state refund on my federal taxes that year. I looked back and sure enough, they are correct.

So...I do owe the money, no question there.

I talked to an IRS rep who said I could pay off the balance over a period of 180 days because I am in the military...and got a letter in the mail also stating that. That would make the money due in February.

However...I got another letter in the mail last week saying the money was due in 10 DAYS and my account was already in a hold status. I explained the 180 day thing...and the rep I spoke to said that is only if you are in a combat zone.

The letter does not say "combat zone"....but does say if you serve in specific campaigns. It was simply mistakenly sent to me.

So...the bottom line is that I now owe the remainder of the money by Dec 12th. I still owe $800 because I paid some of it off already.

Does anyone know what the consequences if I just don't meet that deadline? I can definitely pay it in January...but $800 right now would pretty much kill our Xmas travel plans.

Im going to call the IRS back Monday...but has anyone dealt with something like this??
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Old 11-26-2010, 12:45 PM
 
10,135 posts, read 24,740,078 times
Reputation: 8331
You are eligble for the express installment plan:

  1. Installment Agreement You can apply for an IRS installment agreement using the Web-based Online Payment Agreement application on IRS.gov. This Web-based application allows taxpayers who owe $25,000 or less in combined tax, penalties and interestto self-qualify, apply for, and receive immediate notification of approval. You can also request an installment agreement before your current tax liabilities are actually assessed by using OPA. The OPA option provides you with a simple and convenient way to establish an installment agreement and eliminates the need for personal interaction with IRS and reduces paper processing. You may also complete and submit a Form 9465, make your request in writing, or call 1-800-829-1040 to make your request. For balances over $25,000, you are required to complete a financial statement to determine the monthly payment amount for an installment plan. For more complete information see Tax Topic 202, Tax Payment Options on IRS.gov.
http://www.irs.gov/individuals/artic...149373,00.html

https://sa2.www4.irs.gov/irfof/lang/en/eiaTPstatus.jsp

Submission of this agreement will defer any collection activity on the part of the IRS unless you default on the monthly payment agreement and then only after 30 day notice to you of the default.
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Old 11-26-2010, 12:55 PM
 
17,478 posts, read 11,525,234 times
Reputation: 6756
Default IRS we need flat taxes

You are allowed to make payments, they will charge you with interest and penalty for paying late on the balance you owe. After you pay them off in full, you can call if the interest and penalty was to high, and ask for an adjustment.

Just relax they will try to pressure you, they just want their money. I just went through this, and I owed $11,000.00. Took me 8 months to pay it off, and now the letters have stopped and the calls. You will receive a letter every 3-5 days, just pay them and you are good.

Make sure you keep all of your records of payment, their record keeping isn't all the good at times, either.
Best of luck
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Old 11-26-2010, 02:49 PM
 
Location: Apple Valley Calif
7,474 posts, read 21,224,088 times
Reputation: 5641
A renter in one of my rentals recently went through the same thing. He didn't respond in the time allotted and they froze his bank account and his pay check. The IRS has no sense of humor they don't care if you live in the street and starve to death, they will take every cent you have until they are satisfied.
My renter was three months late on his rent because of the frozen account. Had he not had a two year history of always paying on time, I would have evicted him. I talked to his Tax attorney and knew he was telling the truth.
They refused to unfreeze his account to pay his rent or buy grocery's. He has a family. The IRS doesn't care..! They have no heart.
All this to tell you, don't miss a deadline, don't mess around, if necessary get a tax attorney. These guys aren't fooling...
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Old 11-26-2010, 04:34 PM
 
17,478 posts, read 11,525,234 times
Reputation: 6756
Quote:
Originally Posted by Donn2390 View Post
A renter in one of my rentals recently went through the same thing. He didn't respond in the time allotted and they froze his bank account and his pay check. The IRS has no sense of humor they don't care if you live in the street and starve to death, they will take every cent you have until they are satisfied.
My renter was three months late on his rent because of the frozen account. Had he not had a two year history of always paying on time, I would have evicted him. I talked to his Tax attorney and knew he was telling the truth.
They refused to unfreeze his account to pay his rent or buy grocery's. He has a family. The IRS doesn't care..! They have no heart.
All this to tell you, don't miss a deadline, don't mess around, if necessary get a tax attorney. These guys aren't fooling...
I would say this is not what happens if you have been in contact at all, IRS doesn't mess around, but they will work with you. Like I said, I owed $11,000.00. Sure, they sent lean notices, I just kindly replied, and gave them a payment date. If you are paying something they can't seize your property,well they can but chances are they will leave you alone if payments are coming in. If you can't meet there deadline, than you need to come up with one of your own. They will continue to tack on interest and penatly for being late. They were charging 4.0% on the balance per month and I paid around $300.00 for the penalty.

I have had a couple encounters with IRS, I would say if you don't owe much and can pay in a timely manner, a tax attorney is a waste of time. I got a hold of one when I owed $11,000.00 and they wanted me to sale things, give up credit cards, one even told me to put it on my card. I just took out a small loan and paid IRS off. They are only in it if there's money to be had, sounds like the OP doesn't owe enough to be of major concern, as long as he has been in touch with IRS.

You don't want to mess with IRS, as you said, they don't care. But, I would think it took several letters, and possibly a pass record of not paying, is what set them off. The IRS advised me if I couldn't make a payment, just call in and give a payment date and how much.
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Old 11-26-2010, 04:42 PM
 
Location: .
440 posts, read 1,584,578 times
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What is the telephone number to contact the IRS about making payments? Thanks...
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Old 11-26-2010, 05:17 PM
 
10,135 posts, read 24,740,078 times
Reputation: 8331
Quote:
Originally Posted by gussie View Post
What is the telephone number to contact the IRS about making payments? Thanks...

Did you follow the links I posted above? Why do you want to talk to them on the phone when you can set up a payment agreement online? If you get someone on the phone, don't expect them to want you to take advantage of your right to an express payment arrangement.

PS, most everything else posted in this thread is not exactly on target, e.g. IRS interest rates, penalty abatement,taxpayer rights, etc. If you really need to know the answers to other questions, everything the agents do is in the Internal Revenue Manual which is available online.
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Old 11-26-2010, 05:49 PM
 
48,508 posts, read 88,633,133 times
Reputation: 18188
Souds like "if you serve " means you are doing that at the time to me;pretty clear really. Otherwsie it would have said if you have sewrved. i think it to help those in the comabt zones really because its hard for them to comply.
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Old 11-26-2010, 07:52 PM
 
Location: Sound Beach
2,160 posts, read 6,974,436 times
Reputation: 884
Quote:
Originally Posted by Donn2390 View Post
A renter in one of my rentals recently went through the same thing. He didn't respond in the time allotted and they froze his bank account and his pay check. The IRS has no sense of humor they don't care if you live in the street and starve to death, they will take every cent you have until they are satisfied.
My renter was three months late on his rent because of the frozen account. Had he not had a two year history of always paying on time, I would have evicted him. I talked to his Tax attorney and knew he was telling the truth.
They refused to unfreeze his account to pay his rent or buy grocery's. He has a family. The IRS doesn't care..! They have no heart.
All this to tell you, don't miss a deadline, don't mess around, if necessary get a tax attorney. These guys aren't fooling...
Very commendable on your part for not kicking them out. The IRS screwed you in that case too!!
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Old 11-26-2010, 07:58 PM
 
Location: Sound Beach
2,160 posts, read 6,974,436 times
Reputation: 884
Thank you everyone...for the help. Especially the OPA...I was not aware of that (and the IRS reps did not mention it). They did tell me about the other installment plan where you have to pay a large fee up front and more interest. This one sounds different.
Appreciate the help!!!
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