Installment Agreement 9465

[photoman]

In reading the information on the payment plan with the IRS i cannot find how much interest they charge. Does anyone know the percentage , etc for this year. I cannot find it anywhere

[ChEAr$]

In reading the information on the payment plan with the IRS i cannot find how much interest they charge. Does anyone know the percentage , etc for this year. I cannot find it anywhere

It's very low, about 4% or thereabouts. For someone paying 18% credit card interest, here is a no brainer. Use the tax money to pay off credit card debt earlier.

UnLESS.... you start re charging the card! grin

(Note; this is NOT advice for tax pros covered under circular 230)

[Gary2]

Does this answer the question: http://www.irs.gov/newsroom/article/...236227,00.html

[zeros]

Set Up Charge?

What is the charge to set this up? It used to be $43.00.

[S T]

Last Info Published

The last info that I saw published was a $ 105 fee ( $52 if payment made by Electronic funds withdrawal) or a reduced fee of $ 43, if income is below a "certain" level.
If t/p can make payment due within 120 days, you don't need to use the Form 9465 - just call in to the 1-800-829-1040 line and t/p can avoid the fee.

I believe interest and late pay penalties still apply

Sandy

[JG EA]

I have a client that can't pay almost any amount a month.

1. What would be the lowest amount the IRS will accept a month.

2. Has anyone sent in the Form 911 for a client that can't pay?

[JohnH]

If the balance due is less than $25k, IRS will automatically accept a proposal that will pay it off over 60 months. Allowing for interest and FTP penalty, you can approximate that monthly payment amount by dividing the balance by about 51. However, if they call IRS they can sometimes get approval for a lower payment.

[JG EA]

If the balance due is less than $25k, IRS will automatically accept a proposal that will pay it off over 60 months. Allowing for interest and FTP penalty, you can approximate that monthly payment amount by dividing the balance by about 51. However, if they call IRS they can sometimes get approval for a lower payment.

Thank you!

_______________
And thanks for the one following. Good to know!

[JohnH]

I had to cut my post short yesterday and didn't get a chance to finish what I meant to share. Last year I had a couple of situations involving church members who had large debts to the IRS. I didn't want to get involved with POA's and such, so I just called IRS and then conferenced the taxpayer in on the call. In both cases the amount due was under $25k, so it made things easier for the collections person to deal with us. We got both payment plans set up at something just slightly more than the P&I, which would be a much longer payback period than the 60 month rule and it won't attack the principal.

Neither one qualified for an OIC, so each was basically an "any port in a storm" situation. There are long-term prospects for them to pay the debt, but nothing certain and nothing on the immediate horizon.

I mention this simply because I know it is possible to speak with IRS and get an exception approved if the taxpayer doesn't qualify for an OIC, can't get it placed in uncollecticble status, and just needs a little breathing room.

They do have some fexibility if you get the right person on the phone. You can usually figure that out in the first 3 mnutes of the call. If you've connected with a jerk or someone on a power trip, just find a reason to terminate the call and call back later.