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Got into a problem this year, owe much more than we can pay..long story.
Trying to sell some property to partly cover the debt, but that can take a while.
Anyone ever make payments to the IRS and how much are they really willing to work with someone..
I have the same problem. I just borrowed money from bank that loan the us start up money. Thank god, the bank is willing to loan under the current credit market.
The IRS will work with you on a payment plan. The worst thing you can do is to ignore it and hope it goes away...it won't. Call them and work something out. Maybe they will agree to monthly payments with a balloom payment once you sell the property.
It is true they will be happy to set up a payment schedule. Of course they are happy to. They chage a $100 flat fee for the right to accept payments and they charge you 23.99% interest. I guess that is not too bad a rate since Bank of America charges 29.99%.
"Interest rates" on amounts owed are not 23.99 percent. See below. There is however a late payment penalty. I copied the pertinent parts from irs.gov below. You can get much more info there on this issue with specific cites. Use their search feature speeds up research. Retired after 31 years of explaining such things. Best bet is to have all your info and call. Be patient since you will be talking to someone with a script of steps to go thru.
If you cannot pay off within 24 months, let them know that upfront to save some time. Faster than sending in an Installment Agreement request by mail.
WASHINGTON – The Internal Revenue Service today announced in Revenue Ruling 2008-54 that interest rates for the calendar quarter beginning Jan. 1, 2009 will drop by one percentage point. The new rates will be:
Five (5) percent for overpayments [four (4) percent in the case of a corporation]; Five (5) percent for underpayments;
Seven (7) percent for large corporate underpayments; and
Two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
The interest rates announced today are computed from the federal short-term rate during October 2008 to take effect Nov. 1, 2008, based on daily compounding.
Revenue Ruling 2008-54, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2008-52, dated Dec. 29, 2008.
Paying Late Penalty
The penalty for paying late is 0.5 percent per month, up to 25 percent of the unpaid amount due.Waiver of Penalties
The IRS recognizes many people drop out of the system because of personal problems, including serious illness, a death in the family, or loss of financial records in a natural disaster. Depending on the situation, informing the IRS why returns have not been filed could result in a waiver of penalties. See Getting Free Help.
I've owed the IRS money and I can tell you between the monthly penalities and interest you will probably never pay it off unless you are able to pay it in full in a lump sum or if it's only a couple thousand and you are planning on getting a refund around that amount. Of course they are going to take their cut of the refund before you can blink but atleast you won't owe them anymore.
Dont complain about the IRS. You all had the chance to support a president who would have abolished the IRS which is exactly where they belong too. By supporting the other clowns shows you love the IRS.
And like the last person said. Unless you have the whole debt up front to hand over to them you are likely to be indebted to them for a long long time.
We owed the IRS a couple of thousand we couldn't pay a few years back. We got on a payment plan with them and paid it off. I guess that'a a relatively small amount, but there was no hassle to it. I would rather not owe the IRS, I guess, but at the time that was our only option. It proved to be no different than paying a bank or a credit card
actually.
Dont complain about the IRS. You all had the chance to support a president who would have abolished the IRS which is exactly where they belong too. By supporting the other clowns shows you love the IRS.
And like the last person said. Unless you have the whole debt up front to hand over to them you are likely to be indebted to them for a long long time.
No president could ablosih the IRS;a president is not a dictator as some think. Who said anyhting about abolishing the IRS anyway. Must be Ron Paul;the guy that would take us back centuries tot eh staes rights days of real corruption.
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IRS underpayment
