how many years does the IRS ammortize the pay back amount over? 10? 30 like a mortgage? longer? And, since this is essentially a loan, does the IRS charge interest to the debtor?
2007-02-25 02:13:58 · 3 answers · asked by Just Mee 2 in Business & Finance ➔ Taxes ➔ United States
Yes the IRS will charge interest and penalties on the balance that you owe and will continue to charge it until the Tax liability and accrued interest and penalties are paid in full. The Installment agreement must be full paid within 60 months (5 years). While on the installment agreement you must full pay any and all taxes owed on future years or the agreement will default.
http://www.irs.gov/taxtopics/tc202.html
2007-02-25 02:28:49 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Normally your payment plan must clear the debt within 5 years. Interest is charged on all debts to the IRS. The rate is variable and can change quarterly. Currently it's 8%.
You must also stay current with all other taxes to remain on the payment plan.
2007-02-25 10:50:15 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
They charge interest and penalties until the balance is paid in full
They allow payment arrangements to full pay for 5 years.. They can collect by way of garnishment and levy of your wages or bank account for 10 years
2007-02-25 10:21:25 · answer #3 · answered by stuart 3 · 1⤊ 0⤋