IRS Payment Plans?

[Intoodeep80]

Well, again for the 2000th year in a row, I owe the IRS. The only difference is this year, because of cancellation of debt and a few other bk-related doozies (cashing in stocks for income, etc) the amount I owe has ballooned from 2008.

2008 I owed the IRS $1700

2009 I owe the IRS $2700

Im not really mad, its my own fault, really. I was struggling a few times throughout the year and my boss allowed me to not have federal withholding taken out of my paycheck so I can make ends meet. That, of course, didnt help in combination with the stock sale and cancellation of debts.

Anyways, last year the IRS gave me extensions and I was able to pay by December 31. It was a lump sum payment, and since I was in bk, they waived some fees and the % rate was pretty low (1/2 of 1 percent, IIRC). Still, a lump sum of $1700 was horrific for me to come up with. I had to scrappppeeeee by and I mean really scrape by to make the payment like that. It'd be sooo much easier if I could pay month by month.

Does anybody have any knowledge on getting a 12 month payment plan with the IRS? I googled and didnt find anything terribly helpful. Any links you could share, or any experiences?

[AngelinaCat]

If you have a document that you got via snail-mail with a notice that they are about to garnish your wages or whatever the taxable situation that they are interested, look closely at the paperwork and locate the 800 number that is there and CALL them.

The people that respond are actually very friendly and will NOT rake you over the coals, as it were. Have all of your financial information in hand so hat you can answer the questions, and they will work with you to set up a payment plan.

My 'Hub and I, through stupid mistakes, have about 4 1/2 years to pay off the IRS. We have talked with them many times, and have even modified our payments, so don't worry. The IRS people are not the ogres everyone perceives them to be.

My very Best~~~

[Flamingo]

Go to irs.gov and research the information for payments plans. If you have no plan in place for any other year, you should be able to get a plan with no problem at all. All the insructions are there. I believe you can have up to five years to pay.

[gmk]

Yep, 5 years is what they will do. More, if you do an income statement, showing income, bills, etc. My wife owes close to $15,000 and is on a $50/mo payment until later this year when it goes up to $200+. All of her tax debt is past the three year mark so it will likely be discharged when we file BK.

[HHM]

If you owe $10K or less, you fan request a 36 month payment plan with no questions asked so long as the payment will pay off the debt in that time. If you owe $25K or less, you can request up to 60 months, no questions asked.

There is a fee (something like $152) for being on an installment agreement and interest continues to accrue.

[AMISLANDER]

Well, again for the 2000th year in a row, I owe the IRS. The only difference is this year, because of cancellation of debt and a few other bk-related doozies (cashing in stocks for income, etc) the amount I owe has ballooned from 2008.

2008 I owed the IRS $1700

2009 I owe the IRS $2700

Im not really mad, its my own fault, really. I was struggling a few times throughout the year and my boss allowed me to not have federal withholding taken out of my paycheck so I can make ends meet. That, of course, didnt help in combination with the stock sale and cancellation of debts.

Anyways, last year the IRS gave me extensions and I was able to pay by December 31. It was a lump sum payment, and since I was in bk, they waived some fees and the % rate was pretty low (1/2 of 1 percent, IIRC). Still, a lump sum of $1700 was horrific for me to come up with. I had to scrappppeeeee by and I mean really scrape by to make the payment like that. It'd be sooo much easier if I could pay month by month.

Does anybody have any knowledge on getting a 12 month payment plan with the IRS? I googled and didnt find anything terribly helpful. Any links you could share, or any experiences?

I owed them about 8K three years ago & got into a payment plan, no problem.
They will work with you.
I'm now down to $810.00.
I'm so freaking excited about that!
Just tell them what you want to pay & set it up direct withdrawl from your bank. Easiest thing I ever did.

[Intoodeep80]

Thanks everybody.

I havent filed yet (have to mail in my 1099 since I have "cancellation of debt"), but when I do, should I send in the form requesting a payment plan then? Or do I file and before 4-15-10 I request a payment plan?

[gmk]

The form is available on the IRS website. You can fill it out and send it in with your return. Some time later you will get a notice either agreeing with your proposal or not. If not, typically a phone call will get you started on your way toward an installment plan.

IIRC, the last time I sent in the installment request, they responded with a notice of intent to lien, garnish, blah, blah. I called and got the deal I was pretty much looking for. Not hard to do.

HHM is correct there is an upfront filing fee, the last one I paid was $105. You would typically send this in with your first payment. They'll tell you the actual amount.