QUESTION
Can I set up a payment plan for my taxes? How?
Asked on Sep 16th, 2015 on Taxation - Illinois
More details to this question:
I tried to ask them about a payment plan, but no one has been very helpful. Is there a way to set up a payment plan or get an extension?
2 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The easiest way to set up a payment plan, is to simply start paying a regular amount. Calculate the amount by paying at least the interest which is currently 3.00% per year plus the amount of taxes divided by the collection period. The collection period is 10 years less the time since you filed the return. For example, if you owe $3,000 on 2012 taxes. The interest is $90 a year ($3,000 x 3%) and the amount divided by the collection period is $3,000 / 7 years = $429. Add those together gets you $519 dollars a year or $44 dollars a month. Pay at least that much every month. Be sure to write that the payment applies to 2012 taxes on your check and the transmittal.
Answered on Sep 21st, 2015 at 4:00 AM
Chapter 7 Bankruptcy Attorney serving Lisle, IL
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Mankus & Marchan, Ltd.
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If it is an IRS tax liability and it is under $50,000.00 it should be easy. Call the IRS number shown on the IRS letter, although you may have to wait a long time before an IRS employee answers your call.
Answered on Sep 17th, 2015 at 10:39 AM