Gene E. Utterback, EA wrote:
- quote -

Well, my method is based on paying off an agreement within
11 months, and uses interest at 5% and underpayment penalty
of 1/2 % per month.

And every case that has used my method has had the balance
paid by the following April.

And that's not 30% by a long shot. Unless, of course, the
failure to file penalty might attach cause of the 90%
threshold payments to date.

Cheer$$,
Harlan Lunsford, EA n LA

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"Harlan Lunsford" <lunstax[at]bellsouth.net> wrote:
- quote -

Harlan - I've done a fair share of 9465s and in every single
case I've seen the IRS assesses interest and penalties on
the outstanding balance. I agree that this is his best
option, but it won't get him out of interest and penalties.

FYI - whenever I calculate the payment for a 9465 I use an
average interest rate of 30%. This usually fairly accounts
for the actual interest and penalties the IRS assesses. If
you simply divide the balance due by the number of months
you want to pay, you end up with a balloon payment at the
end.

Gene E. Utterback, EA

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abelard_malcolm wrote:

- quote -

This is what I give my clients who ask the same question.
Dear Client:
*** Instructions ***
*** What if you cannot pay your taxes when they are due? ***

First, you should remember that if you do not pay the full
balance due you will be charged both penalties and interest,
but less than you would pay if you did not file on time. The
longer it takes you to pay off your debt; the more penalties
and interest you will be charged. So it is in your best
interest to pay off the taxes a fast as you can.

When you file your return enclose a payment that is as large
as you can with the return.

Each subsequent month on the same day of the month, for
example the fifteenth, mail a substantial payment to be
applied against the balance that remains.

Federal payments, Make them payable to United States
Treasurer, note your Social Security number and 2003 Form
1040 on each check. Mail to:

IRS Center Memphis, TN 37501

For Virginia payments make them payable to Virginia
Department of Taxation, note your Social Security number and
2003 Form VA760 on each check. Mail to: Department of
Taxation P O Box 1498 Richmond, VA 23218

If you have any further questions, please call.

Sincerely,

Frederick E. Jorden

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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abelard_malcolm wrote:

- quote -

NOT a problem. File your return along with form 9465, which
is an installment agreement request, which is automatic
provided you don't owe and arm AND a leg. You specify how
much and what day of the month you'll send it. Send as
much as you can with it, then divide balance by 10 for a
monthly amount that will pay it off before next April 15th,
in case you need on next year.

Cheer$,
Harlan Lunsford, EA n LA

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abelard_malcolm wrote:

- quote -

Sorry, no way to have your cake and eat it, too. If you
needed additional time to pay your credit card bill, you
wouldn't be surprised if they charged you interest, would
you?

Phoebe

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I've been downsized from a position, tax time is quickly
approaching and I find I don't yet have the money to pay! My
question is what should I do, I simply need additional time
to pay, but of course don't want to pay any kind of fines
either in addition to money I don't have. There must be some
kind of dealy I can get? What form/s do I need to fill out?
Any help very greatly appreciated!

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