How much would a persons monthly payment be to the IRS on a 5,000.00 tax debt, if they were on a payment plan?

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How much would a persons monthly payment be to the IRS on a 5,000.00 tax debt, if they were on a payment plan?

2007-03-25 19:11:39 · 2 answers · asked by dtbell76 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

That depends upon the agreement that you have negotiated with the IRS. Payment plans are based upon your ability to pay.

If you have sufficient funds on hand or readily available the IRS will not authorize a payment plan at all. If you could reasonably clear the debt in 2 years, it would be payable in 24 equal monthly installments, plus penalties and interest of course.

2007-03-25 23:26:17 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋

Depends on each individual.....There is not a fast and hard rule.

Heck, some of our clients pay $3M each quarter....so if they owe 5K then they owe 5K no payment plan.

2007-03-25 19:15:07 · answer #2 · answered by mailjunkie123 3 · 2⤊ 0⤋