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Still paying on past taxes now owe again

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What happens if you are on a payment plan with the IRS already and you fill out your taxes and owe a pretty big amount?

I know, I know change your withholdings. We did that last year, but I guess it wasn't enough :? We still owe the IRS like $600 from last year now we owe $3,344 :shock: I know we won't be able to pay THAT much by 4-15.Can they just add this onto the payment plan I have with them already?

I am just sick :cry: This sucks :x

Been there before and will be again this year. Contact the IRS well before 4-15 and set up the installment agreement. There should be no problem adding it to your existing plan. Just remember that you're dealing with the worlds worst debt collectors (they make ARM, LVNV and IL-legal Mediation look like girl scouts by comaparison). Miss a payment by a day and they're ready to levy bank accounts. I HATE THE IRS!

Sub: #1 posted on Mon, 02/02/2009 - 23:05

Moderators Cum Industry Expert
(Posts: 4666 | Credits: 308.23)

Thank you so much for the reply :D I feel better now!! I don't have to worry about missing a payment, I have it taken from my checking account. I may have to increase my payment though.

Sub: #2 posted on Tue, 02/03/2009 - 13:55

puddlejmpr puddlejmpr
(Posts: 1634 | Credits: 74.81)

Was it difficult to get set up on the payment plan with them? I am looking at doing that this year, but from reading on their web site it looks like you have to pay up front to get on the payment plan. Can either of you give me more info on how it works?

Sub: #3 posted on Wed, 02/04/2009 - 19:56

cntrygirl63 cntrygirl63

(Posts: 55 | Credits: 10.12)

no very easy actually. I have been in the same boat 2 years in a row. I called them and they set it up over the phone and then sent me a written copy of the arrangement.They add last years to the previous years and I just make a monthly payment right out of my checking account. In Jan however they never took out my payment, not sure what that is about.

Sub: #4 posted on Wed, 02/04/2009 - 20:06

lmale lmale

(Posts: 741 | Credits: 98.46)

Did they charge a fee to do the payment plan? I'm trying to decide whether to ask for the payment plan or to ask for the 120 day extension. I don't owe a lot ($600) but it's a LOT when you don't have it!

Sub: #5 posted on Wed, 02/04/2009 - 20:22

cntrygirl63 cntrygirl63

(Posts: 55 | Credits: 10.12)

You get charge a set fee for the withdraws from your checking account and of course you are being charged interest. I would extend

Sub: #6 posted on Wed, 02/04/2009 - 21:22

lmale lmale

(Posts: 741 | Credits: 98.46)

That's what I'm thinking, but what if I don't have the money at the end of the extension? Can I do the payment plan then? I'm sure that I could make payment all along through the extension, but I dont' see me coming into a fortune between now and July/August. lol

Sub: #7 posted on Wed, 02/04/2009 - 22:10

cntrygirl63 cntrygirl63

(Posts: 55 | Credits: 10.12)

I am sure that you can. We never had a problem with setting up payment plans with the IRS any time we owed. They do add interest and penelty charges

Sub: #8 posted on Thu, 02/05/2009 - 07:10

2nband 2nband
(Posts: 2279 | Credits: 469.19)

I know a couple years ago I talked to the IRS about a payment plan and the rep at that time encouraged me to find another option and use theirs as a last resort. So I figure it' won't be cheap, but right now I don't see too many other options. Well I have a month to think about it before I file, see what happens in that time.

Sub: #9 posted on Thu, 02/05/2009 - 21:20

cntrygirl63 cntrygirl63

(Posts: 55 | Credits: 10.12)

I had to pay a $50 fee to set up the direct withdrawl. But otherwise I really don't think the interest amounts to much. Yes, they want you to get a loan to pay them, it saves them time and paperwork. But when your credit sucks you have no other way but to set up arrangements.

It isn't hard to set up arrangements. If you have someone else do your taxes you can ask for the form to fill out and send that right in with your taxes. I did that one year. But last year I did it on my own. I guess I am going to file my federal and then call them about what I owe this year and see if they can keep me on the same payments for awhile yet.

Sub: #10 posted on Fri, 02/06/2009 - 07:43

puddlejmpr puddlejmpr
(Posts: 1634 | Credits: 74.81)

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