So, I get hit with a huge tax bill. Even with all my deductions, I'm hit with $1,200 in taxes. As a 21 year old self-employed web designer, this sucks ass.
Anyway, I started looking around for payment plan options to the IRS... for example, I think I read that I should mail in as much as I can, then they'll send me a bill for the rest... I really only need a 3 week extension. I could send them a check for $800... then I guess they'd bill me the rest?
My tax guy e-filed for me already. So they know how much should be coming in... suggestions?
"In addition, if you filed on time but didn't pay on time, you'll generally have to pay a late payment penalty of one-half of one percent of the tax (0.5%) owed for each month, or part of a month, that the tax remains unpaid after the due date, not exceeding 25 percent. However, you will not have to pay the penalty if you can show reasonable cause for the failure. The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy."
dude, set up a plan. Call them. And if you get a jerk on the phone hang up and dial again. Its amazing how much leeway the individual you end up talking to has.
If you don't mind your credit potentially taking a hit, go ahead and pay your taxes late.
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WulfDisciple of TzeentchThe Void... (New Jersey)Registered Userregular
edited April 2008
I was given the option to send in my payments in installments just by talking to a few people (and I REALLY got dinged this year too ). So yeah, call them and work out a plan that you can afford.
I read that penaltys for late payment are .5% of total owed every month it's late... should I just pay May 15th?
As someone who did support for TurboTax for a season (NEVER AGAIN :P) and had to talk to people at the IRS several times....No, no, no, do not just pay it late without making arrangements. As someone already said, call them, and keep calling until you get a decent human on the line who will work with you.
It's hard enough dealing with them when you're in good standing - I talked to several customers that had been blatantly lied to just to get them off the phone - so don't make it any harder on yourself than you have to.
If you have a low interest credit card, you might also look into paying by credit card. I have to pay my taxes from overseas so my tax preparer was nice enough to give me a pamphlet with several payment options. To pay by credit card it says to visit www.officialpayments.com or call 1-800-2PAY-TAX. Unfortunately for me, the FOREX rate for the Korean Won devalued against the dollar by almost 10% just 3 weeks ago so this year it's going to hurt.
Oh, it looks like there are other authorized sites you can use to pay with your credit card. This is a list of sites straight from the IRS website.
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ThomamelasOnly one man can kill this many Russians. Bring his guitar to me! Registered Userregular
"In addition, if you filed on time but didn't pay on time, you'll generally have to pay a late payment penalty of one-half of one percent of the tax (0.5%) owed for each month, or part of a month, that the tax remains unpaid after the due date, not exceeding 25 percent. However, you will not have to pay the penalty if you can show reasonable cause for the failure. The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy."
And the IRS is even willing to waive this if you show a willingness to pay. They as a department get a rap as bad guys but for the most part will bend over backwards if you show a willingness to pay. So call them up and say "I can't pay the full amount right now, but I can pay X right now, can we set up a payment plan for the rest?" and they will work with you in a reasonable fashion.
And they will accept "I didn't expect it to be that much" as a reasonable cause for failure to pay the full amount. Just call them today.
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WulfDisciple of TzeentchThe Void... (New Jersey)Registered Userregular
edited April 2008
They will not however accept the excuse of "But I thought loosing in Vegas counted as a deduction!" :P
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firewaterwordSatchitanandaPais Vasco to San FranciscoRegistered Userregular
edited April 2008
You may want to take a look at this - might give you some ideas. It also has a cute picture of a cat, which is always a bonus.
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Do NOT just send in a random payment for less than the full amount without speaking with someone at the IRS before hand.
Also, there's a tax thread stickied at the top of this forum.
I read that penaltys for late payment are .5% of total owed every month it's late... should I just pay May 15th?
"In addition, if you filed on time but didn't pay on time, you'll generally have to pay a late payment penalty of one-half of one percent of the tax (0.5%) owed for each month, or part of a month, that the tax remains unpaid after the due date, not exceeding 25 percent. However, you will not have to pay the penalty if you can show reasonable cause for the failure. The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy."
Do not just send in the money late.
As someone who did support for TurboTax for a season (NEVER AGAIN :P) and had to talk to people at the IRS several times....No, no, no, do not just pay it late without making arrangements. As someone already said, call them, and keep calling until you get a decent human on the line who will work with you.
It's hard enough dealing with them when you're in good standing - I talked to several customers that had been blatantly lied to just to get them off the phone - so don't make it any harder on yourself than you have to.
Oh, it looks like there are other authorized sites you can use to pay with your credit card. This is a list of sites straight from the IRS website.
Looking for a Hardcore Fantasy Extraction Shooter? - Dark and Darker
And the IRS is even willing to waive this if you show a willingness to pay. They as a department get a rap as bad guys but for the most part will bend over backwards if you show a willingness to pay. So call them up and say "I can't pay the full amount right now, but I can pay X right now, can we set up a payment plan for the rest?" and they will work with you in a reasonable fashion.
And they will accept "I didn't expect it to be that much" as a reasonable cause for failure to pay the full amount. Just call them today.