I owe money this year on taxes for the first time... Do I have to pay all of it at the same time??

Question

Or do they do like a monthly payment program??

Answer 1

Its advised that you pay what you owe in full to avoid being charged interest and penalties. If you can not full pay you can set up an payment plan, there is a one time set up fee of $105.00 and interest and penalties will be charged until the balance is paid in full.
See the attached for more information
http://www.irs.gov/taxtopics/tc202.html

Answer 2

The IRS do take monthly instalments but you would be wise to calculate how much extra they will charge you. Many times it is cheaper to get an bank loan (or a 0% APR credit card) and pay the tax off in full by April 17th.

Answer 3

IRS offers a payment plan, it's paid monthly, you will be charged interest on the balance while you're paying it off, around 10% I think, don't hold me to that.

You can either call them or go on the website to get the form to ask for the payment plan. When you send your return in you have to pay something.

Just as an example, if you owed $4800, you'd mail the $800 with the return, and they would divide the balance up equally over 12 payments, so with the penalty you'd be paying around $400 a month until it's paid off. You can also pay it off sooner if you like to avoid the interest and penalities.

Answer 4

If you can't pay it all by April 17, pay what you can and they'll set up a payment plan for the rest. You'll pay interest on the unpaid amount, of course.

Answer 5

You have to pay it by April 17th (they extended it this year). I think you can work out a special payment plan with them if you call, but I'm sure there will be penalties added.

Answer 6

You can file an extension. Check IRS.Gov and down load the form.

Answer 7

You have to pay it all at once.