I have to pay $600.00 which I don't have to the IRS this year, I don't make as much money as I did last year and there is not way I can come up with this money in a week. Does anyone know what my options are without having to pay pentalties?
2007-04-07 03:52:39 · 7 answers · asked by accebermn 3 in Business & Finance ➔ Taxes ➔ United States
You can make payment arrangements to pay off the $600 that you owe to the IRS--even as low as $25 a month if you need to. They will charge an initial fee to set up the payment plan and also add on interest, but in general it does work and really the extra fees are not that much--been there, done that!
Here's a link to give you more info and set up a payment plan with the IRS:
http://www.irs.gov/businesses/small/article/0,,id=108347,00.html
If you have no other options of coming up with the money, like maybe putting $600 on a low interest credit card, then you may as well just make payments every month to the IRS until you get it paid off.
2007-04-07 05:12:28 · answer #1 · answered by MarineMom 6 · 0⤊ 0⤋
I agree with WealthBuilder. Send as much as you can now and the rest as soon as you can. If you can pay the full amount in a few months, the IRS will probably not get around to collection efforts before you are paid up. There will be penalties and interest on the late amount, but they may be LESS than credit card interest. The late payment penalty is 0.5% per month and the interest is 3% above the federal short term rate.
2007-04-07 08:44:21 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
If you can pay it off within 6 months, do NOT mess around with a payment plan. Just pay as much as you can next week, and pay the rest as quickly as possible. A payment plan will start with the IRS assessing a $150 user fee, plus interest, plus penalties. This is a SMALL amount (maybe not to you), but it needs to be paid quickly to avoid ending up chasing your tail year after year with shortages to the IRS.
--A Damn Fine Tax Advisor
2007-04-07 05:29:33 · answer #3 · answered by WealthBuilder 4 · 0⤊ 1⤋
Not without paying any penalties, no. The IRS will set up a payment arrangement for you but there will be penalties and interest charges for late payment; there's no way around them unless you can pay by the deadline of April 17th.
2007-04-07 04:03:13 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Pay with your credit card
2007-04-07 05:24:12 · answer #5 · answered by waggy_33 6 · 0⤊ 0⤋
you could ask others to help you and pay them back. yet you would have to stop spending on luxuries for awhile.
2007-04-07 04:15:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you can avoid penlties by asking them to waive it. but u must pay intrest.
Good luck
M.R.
2007-04-07 03:56:06 · answer #7 · answered by Mego R. 1 · 0⤊ 0⤋