The IRS accepts installment agreements. Usually you can take up to 5 years to pay back, so if you owe IRS 10, 000.00 you would have to pay $166 per month, plus the interest and penalties are still adding up.
If you seriously can't pay you can complete Form 433-F, Collection Information Statement, download form from the IRS website: www.irs.gov.
If you do complete the Form 433- F you must attach 3 months current detailed bank statements, 3 months current pay stubs. List all your credit cards etc. and be able to proof any and all information you list on the Form 433-F, remember IRS already knows a lot about you so don't try to lie on the form..
IRS does charge a Installment Agreement USER FEE $105.00 or $52.00 for Direct Debit Installment Agreements. And if they request your employer to garnish your wages the USER FEE is also $105.00.
2007-10-04 14:34:55
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answer #1
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answered by Ms. Angel.. 7
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Your ability or inability to pay has no consequence on what you owe. IOW, interest and penalties continue to add up. Your best course of action is to file any returns outstanding and attempt to work out an installment agreement with the IRS.
The IRS or any state agency that collects taxes has the ability to freeze your assets and take what you owe if you don't live by the terms of your tax filing. That results in a court order that will wreck your credit. Trust me, you don't want to a judgement on your credit report.
2007-10-04 08:22:14
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answer #2
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answered by HudsonCy 1
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If you truly can't pay now because of hardship, IRS will classify your account as currently not collectible and put it on ice until your situation improves. Interest and late payment penalty will continue to accrue on your balance due. If you will never be able to pay, IRS may be willing to accept less than 100 cents on the dollar.
2007-10-04 08:40:35
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answer #3
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answered by Anonymous
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1) You should set up a payment plan with them or borrow the money.
2) They can charge interest and penalties.
3) If you do not pay and do not set up a payment plan, then expect wage garnishments, etc.
2007-10-04 08:16:28
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answer #4
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answered by StephenWeinstein 7
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