if you owe taxes at the end of the year, including an estimated tax penalty,does the irs allow a payment plan?
angeldust asked:
I previously asked a question regarding the estimated tax penalty at the end of the year and if the IRS will allow a payment plan. My new question involves owing about $2035 in taxes (I am self employed). If I am not able to pay the full amount,would I be able to make payment arrangements with the IRS or I would only be able to do that with the penalty? I am sure I will be charged a penalty, as I will not be doing the quarterly payments. Thanks.
Eileen
I previously asked a question regarding the estimated tax penalty at the end of the year and if the IRS will allow a payment plan. My new question involves owing about $2035 in taxes (I am self employed). If I am not able to pay the full amount,would I be able to make payment arrangements with the IRS or I would only be able to do that with the penalty? I am sure I will be charged a penalty, as I will not be doing the quarterly payments. Thanks.
Eileen
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I would recommend immediately calling the irs once you have filed. After that you do still have until the 15 of April to if they won’t let you so i would try to save it up if the won’t do it. Basically file early so you can work something out with them.
IRS will allow a plan but talk to them now. Don;t put off. Making the quarterlies would be easier & smarter.
I know that H & R Block has an easy pay plan that they will loan you to pay the taxes. I am uncertain about the terms, as I don’t see it often but it is available.
I put the below in a search and found this. Hope it helps.
Yes you can do an installment plan. File form 9465 (from).
I haven’t seen the other question but be sure you have looked at minimizing the penaly by using seasonality (when the income was earned during the year) and other options. See form 2210.
The payment plan isn’t automatic, but if you can demonstrate that you really can’t pay all you owe in one payment, then you will probably be able to set up a payment plan. You’ll pay interest until it’s paid off, in addition to whatever penalties are assessed.