OT: IRS Payment plan question

gogolion

Well-Known Member
Aug 28, 2013
960
653
1
All Knowing Board: A friend of mine owes more than he can afford on his taxes. He signed up for a monthly payment plan with the IRS, but no payments have been withdrawn from his account yet. When he logs into the IRS web site he isn't able to get any information about his payment plan. Also, when he signed up it didn't give any details about interest or penalties he may owe. It only said that he'd be charged something like $31 for each payment. So that all seems very fishy that they aren't required to give him details.

Anyway, since then, he's decided he'd be better off getting a personal loan from his bank, given those high fees alone (not to mention additional interest the IRS would likely charge). The thing is, since he can't seem to get any information on his payment plan, he obviously can't cancel it either. So he's worried that if he uses a personal loan to pay his taxes he will still get charged via the payment plan.

Any suggestions on how he should proceed?
 

slykens

Well-Known Member
Nov 21, 2016
1,173
1,318
1
The IRS is a metric disaster these days.

He could try to get someone on the phone but that’s a crap shoot if they can even help. It sounds like he can’t afford a tax attorney or accounted, someone who would have access to the Enrolled Agents line.

I mailed in some returns last year that took them ten months to process- if that gives you any idea how bad it is.

Perhaps the lowest cost approach would be for him to reach out to his US Representative and have them make a congressional inquiry to the IRS as to the status of his case?
 

psualt

Well-Known Member
Nov 2, 2014
3,046
3,210
1
He should be able to login to the irs website and see this amount. If for some reason this isnt available you can always request transcripts that can be uploaded which should show the amounts. As mentioned above, they are painfully slow. I would suggest finding out the amounts due and paying in what it shows as due if he can’t get through to them via phone. My concern is if you wait the amounts just continue to mount.
 

gogolion

Well-Known Member
Aug 28, 2013
960
653
1
He should be able to login to the irs website and see this amount. If for some reason this isnt available you can always request transcripts that can be uploaded which should show the amounts. As mentioned above, they are painfully slow. I would suggest finding out the amounts due and paying in what it shows as due if he can’t get through to them via phone. My concern is if you wait the amounts just continue to mount.
When he logs in he can see his 2021 return listed, but when he clicks on it it just says "Your information is not available at this time". No other information is available. You would think it would at least have a status like "You've applied for a payment plan and it is being processed" or something to that effect, but there is nothing.
 

psualt

Well-Known Member
Nov 2, 2014
3,046
3,210
1
When he logs in he can see his 2021 return listed, but when he clicks on it it just says "Your information is not available at this time". No other information is available. You would think it would at least have a status like "You've applied for a payment plan and it is being processed" or something to that effect, but there is nothing.
It sounds to me like it hasn’t been posted yet. I would have him pay the balance due ASAP and if interest and penalties were calculated pay though as well.
 

Hugh Laurie

Well-Known Member
Mar 26, 2017
594
591
1
Did your friend apply for an Offer in Compromise? This is a program the IRS is reluctant to let taxpayers know about.

Offer in Compromise

Don't know where your friend lives but if he/she lives close to an IRS office they might best be served by
setting up an appointment to discuss the matter face to face.

Local IRS offices

The only other option is to call the IRS at 1- 800-829 1040, hopefully hit the right prompts, and be prepared to wait about an hour and a half to speak to a representative. Best to call at 7AM when they start taking calls.
 

psualt

Well-Known Member
Nov 2, 2014
3,046
3,210
1
All Knowing Board: A friend of mine owes more than he can afford on his taxes. He signed up for a monthly payment plan with the IRS, but no payments have been withdrawn from his account yet. When he logs into the IRS web site he isn't able to get any information about his payment plan. Also, when he signed up it didn't give any details about interest or penalties he may owe. It only said that he'd be charged something like $31 for each payment. So that all seems very fishy that they aren't required to give him details.

Anyway, since then, he's decided he'd be better off getting a personal loan from his bank, given those high fees alone (not to mention additional interest the IRS would likely charge). The thing is, since he can't seem to get any information on his payment plan, he obviously can't cancel it either. So he's worried that if he uses a personal loan to pay his taxes he will still get charged via the payment plan.

Any suggestions on how he should proceed?
FYI…The $31 fee you are referencing appears to be a one time set up fee. Depending on the application and payment plan there are different fees associated.
 

gogolion

Well-Known Member
Aug 28, 2013
960
653
1
Did your friend apply for an Offer in Compromise? This is a program the IRS is reluctant to let taxpayers know about.

Offer in Compromise

Don't know where your friend lives but if he/she lives close to an IRS office they might best be served by
setting up an appointment to discuss the matter face to face.

Local IRS offices

The only other option is to call the IRS at 1- 800-829 1040, hopefully hit the right prompts, and be prepared to wait about an hour and a half to speak to a representative. Best to call at 7AM when they start taking calls.
Thanks, I think the in-person visit may be best. I'll forward him this info.
 

Agoodnap

Well-Known Member
Sep 27, 2015
3,224
4,562
1
Did your friend apply for an Offer in Compromise? This is a program the IRS is reluctant to let taxpayers know about.

Offer in Compromise

Don't know where your friend lives but if he/she lives close to an IRS office they might best be served by
setting up an appointment to discuss the matter face to face.

Local IRS offices

The only other option is to call the IRS at 1- 800-829 1040, hopefully hit the right prompts, and be prepared to wait about an hour and a half to speak to a representative. Best to call at 7AM when they start taking calls.
It's been a year since I've used this process but it has worked for me every time I've called (about 10).

Get your current and prior year tax return copies and have them when you call.

Dial: 1-800-829-1040

1. First question is choose your language. Select the appropriate choice.
2. Choose option 2 "Personal Income Tax"
3. Choose option 1 "form, tax history, or payment"
4. Choose option 3 "for all other questions"
5. Choose option 2 "for all other questions"

The system should now ask you for your SSN. DO NOT ENTER anything.

After the system asks for your SSN a second time you will be prompted with another menu.

Choose 2 "for personal or individual tax questions"

An agent will now answer the phone.

Good luck!
 
  • Like
Reactions: dailybuck777