I cashed out $20k from an IRA into which I rolled over some money to pay for medical expenses. I figured I will pay around $3k . Is there a way to pay back in 3 monthly payments? I dont have all the money at once. Do I need to use an attorney or professional services to get this done?
2007-12-31 11:19:07 · 6 answers · asked by DREAMWEAVER 2 in Business & Finance ➔ Taxes ➔ United States
IF you owe IRS call 1-800-829-0922 or 1-800-829-8374 and arrange for an installment agreement. Or visit IRS website, and you can request an installment agreement on line. OR download form 9465 and request an installment agreement thru the mail. But if you know you can full pay the amount you owe in 3 months, then call and ask for an "extension to pay" IRS will ask you the date you plan to full pay and give you a pay off balance, you can then send in your payment all at once. so you don't have to pay the USER FEE of $105.00, IRS charges $105.00 for providing an installment agreement, or $52.00 if you set up a direct debit installment agreement.
2008-01-01 08:13:28 · answer #1 · answered by Ms. Angel.. 7 · 0⤊ 0⤋
You can file a form 9465 which is an installment agreement with the Internal Revenue Service. They do charge a service fee for this service, and they add interest and penalties until the amount is paid in full.
When you file your 2007 tax return, any refund you are to receive will be withheld and paid on the amount owed from previous years.
This can be filed by you or your professional preparer, whichever is better for you.
Hope this helps.
2007-12-31 13:27:54 · answer #2 · answered by Soundless 6 · 0⤊ 0⤋
yes - there is a form you fill out for installment which will aski you how much you can afford each month - send this IRS and they will set a payment for you. However you are charged interest and a small penalty which increase the taxes you owe. Also any refunds in future years will be applied to this amount until it is paid off. It is a good way if you cannot afford to pay all the taxes.
2007-12-31 12:10:55 · answer #3 · answered by martymav 1 · 0⤊ 0⤋
When you send in your return, send with it a short letter asking for the installment plan along with the first installment. They are generally cooperative with people who are honestly trying to pay what is due. Interest will be added to the bill though.
2007-12-31 11:39:03 · answer #4 · answered by rainman91302 1 · 0⤊ 0⤋
If you can't pay all that you owe right away, the IRS will set up a payment plan for you - with interest, of course. You don't need an attorney or accountant to get that set up - you can talk directly to the IRS about it.
2007-12-31 11:31:57 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
Send in as much as you can with the return. IRS will send you a bill for the balance in six to eight weeks with three follow up bills (each with progressively sterner wording) over a few months after that. You should have the account paid off by then. If you have money and haven't received a bill, send a check with instructions about how to apply the money to IRS. It will be cheerfully accepted. Try to have your payments reach IRS before the 15th of each month because additional late payment penalty of 1/2% per month will accrue on the 16th.
2007-12-31 11:25:21 · answer #6 · answered by Anonymous · 1⤊ 0⤋