Can I Make Payments?

Question

I know you can make payments on your federal taxes, is there a certain amount you have to owe before making payments? Professional tax advice or answers based on experience are preferred.

Thank you.

Answer 1

We have owed as little as $400 before and they let us set up payments! They let you tell them what you want the monthly amount to be or how much you can afford. You can set up payments for $25 a month if the amount you owe is not real high. In general, they would like you to have it paid off by the time the next tax season rolls around--at least that's what they indicated in the info packet they sent us. I know some people are still making payments even when they have to file their taxes again, and are hoping that a refund in the future year will just pay off any remaining debt.

So, I just wanted you to know--based on my experience--that you can just owe several hundred and still be allowed to make small monthly payments.

Answer 2

you can get on the IRS website to set up payments, however it may be cheaper to get a loan at your local bank. It's a lot cheaper in the long run. The one thing I would suggest though is plan for this year. It's not to late to make the adjustments so you don't owe next year. Good luck

Answer 3

You can get all the information you want on this subject on the IRS web site
http://www.irs.gov/index.html

there is a charge to set up a payment plan and high interest rates to pay. Pay all you can by due date.

Answer 4

The only limit I found was a $25,000 maximum. I suspect if you only owed $50 or so, the IRS would ask why you can't pay all at once, but I don't see a formal minimum.