how do i calculate payments?

Question

after a recent audit by the irs, i am told that i have to repay almost 6500 to the irs....i've been told that its possible to set up a repayment plan but what is the lowest amont that i can pay and will my refund that i would get i guess in january off set how much i owe?

Answer 1

The IRS will look at your income and expenses, and they'll tell you what they think you can pay. You can negotiate on this a little, but if they say $200 a month, you won't likely be able to negotiate it to $25 a month.

Any refunds you'd be eligible for before the back taxes are paid would most likely be taken and applied to your debt. You could adjust your withholding so you don't have a refund, but don't take it so low that you owe again, and dig yourself in deeper.

Answer 2

it depends on what they will accept and the term & interest rate.
internet search for amortization tables or calculator to determine payments for amount/rate/term..
Generally they will keep any & all refunds due until the tax is paid off.