Ive filed for my taxes but never paid them nor file an extension or made an installment plan.what will happen?

Question

i owe about $2000 which i do not have. How much would the interest and penalties be???

Answer 1

The interest right now is running something like 8% a year, so would be about 2/3% a month. Then the failure to file penalty will be around 1/2% per month. So on about $2000, penalties and interest for each month are accumulating at about $24 a month.

You'd be wise to call and get an installment plan set up. They'll call you eventually if you don't call them, but you could owe a lot more by then.

Answer 2

Right now the interest rate is 8% compounded daily, the penalty rate is .5 of 1% of the unpaid principle balance owing. Did you file the taxes on time? (IE stamped on the due date or into the IRS by the due date of the return) If not then you also have a failure to file penalty which is 5% each month or part of the month (max of 25%) of the unpaid balance and anything over 60 days would have a minimum $100 or 100% of the unpaid tax whichever is less.
Which year was this for? Call up and talk to the balance due department 1-800-829-1040, its better if you can take out a loan from a bank or borrow from friends or family because installment agreements have a $105 service fee for starting it and your balance continues to accrue penalties and interest until its paid in full.

Answer 3

The interest will vary and is based on the daily interest rate. Call them now and ask for a payment agreement. If you don't they can garnishe your wages and seize your bank account for the amount you owe.

Answer 4

Dude, contact the IRS immediately and fess up. It's better if you go to them than vice versa. They'll work with you to set up a payment plan that works. Otherwise, they can just garnish your wages, and seize your property. Do not wait.

Answer 5

You need to contact the IRS now and set up a payment plan, they will set the interest rates according to what they think you are able to pay.