Does anyone know if its possible to make payments on taxes owed?

We have never had to pay in taxes before. I am tempted to blame the early tax checks we got for the kids, but who knows.

But now we owe a ton of money, and there is no way we can just write out a check for that amount.

It is my understanding that payments are not allowed unless you make those estimated payments throughout the year (before) they are actually due. The government wants their money right away and they don't care how you get it. If you do not pay it when it's due, you get hit with penalties and pretty hefty interest charges. You'd be better off taking a loan than paying the interest the government would hit you with.

You could try filing for an extension on your taxes if that timing will help you out at all.

Filing an extension, however, does not extend the payment time. If you owe money, your must remit that with the extension form; only the return itself gets extended. If you don't, penalties and interest will still apply beginning April 15 on outstanding balances.

The IRS is pretty understanding about making payment arrangements if you are up front and contact them, they will work with you, but you will still pay interest and penalties on the outstanding portions

The Internal RipOff Service says:

"If you cannot pay the full amount, you may ask to make monthly installment payments. You may have up to 60 months to pay. However, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2004, even if your request to pay in installments is granted. You must also pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible when you file. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan."

Isn't that wonderful?

If you're talking about making estimated tax payments through the year, yes you can, and the last one is due by January 15.

But I fear you're probably expecting to OWE taxes this year, right? You may be in luck. Call the IRS, 1-800-829-1040 BEFORE April 15, tell them you think you'll owe money this year, tell them approximately how much, and ask them if it's possible to make payment arrangements without incurring a penalty.

(Be prepared: before you're off the phone, they're going to ask you if you're in the same position THIS year, and they'll ask what arrangements you've made so that you won't owe again. If you've filed a new W-4 with your employer, you're probably good to go.)

THE BEST WAY TO MAKE PAYMENTS TO THE IRS FOR TAXES OWED:

Ammend your taxes for the previous 3 years! Unless your taxes were done by a professional, you can almost always find something you missed, and you can apply for the refund before April 15 and have the additional money applied ot what you owe this year.

(E-mail me if you have any questions or need assistance. My motto is "steal from the IRS and give to the poor". Amending your taxes is perfectly legal, and here, advice is free.)

tsaeb's hoot and howl tax relievers

You may be eligible for some hardship money from someplace. Usually, it is called "OPM," or "Other People's Money." Try hitting on some relatives and friends. Sneak up on the one who is all too eager to divulge that he/she already got (yippee!) a refund. P.S. Some of you owe me for this one, one of my faves. . . .

So help me God . . . but I also heard about giving $500 to the local church and getting a receipt for $1,000. Now, which seducing spirit is pestering me? One of tsaeb's main principles is to never look a gift horse in the mouth. P.S. This one takes two sets of b*lls (dummy, not bills): yours and the father's/pastor's. . . .

Did someone's relative die? The $$$ recipient is good for a hit. Suggestion: $500 in gratitude for being still alive. P.S. This one I did years ago. When a girlfriend's much older boyfriend died, I borrowed 10% = $500--and paid it back in goods from my gift shop, which I had closed!

Hey, mahal, these ideas are a lot less messy than yours about amending three years of tax returns . . . with, eh, fibs and/or exaggerations.

This message has been edited. Last edited by: tsaeb,

If you have a pension fund, then take out a pension loan, because their rates are very low. However, it takes a few weeks to get the money.

Credit unions also charge low rates on loans.

Shelly

The IRS takes payments. They will send you an envelope with a payment slip in it each month. They will even let you pay each month online. They will work with you.

IRS Payment Plan